ASPA projecting a decrease in revenue for three divisions

fili@samoanews.com

American Samoa Power Authority is projecting a decrease in revenue for three divisions under its proposed fiscal year 2017 budget, which shows that only the Solid-waste Division is forecasting a slight increase in revenue collection.

ASPA’s proposed FY 2017 budget totals $80.58 million with 471 employees compared to the approval FY 2016 budget of $124.59 million with 441 employees. ASPA’s budget is listed under the Enterprise Fund budget category, which includes ASG entities that earn revenues from their operation.

In his FY 2017 budget summary letter to Fono leaders, Gov. Lolo Matalasi Moliga explained that the decrease in the Enterprise Fund proposal for FY 2017, is because of a major decrease in ASPA’s budget — $44.01 million — which is primarily due to the drop in the cost of fuel and completion of disaster related Federal Emergency Management Agency projects.

REVENUE

FY 2017 revenue sources for ASPA, according to the budget document include: electric revenues at $49.09 million (39% decrease from FY 2016); water revenues $16.37 million (9% decrease from FY 2016); wastewater at $12.76 million (26% decrease from FY 2016) and Solid-waste at $4.34 million — an increase of 15% from FY 2016.

Total approved revenues for FY 2016 was $116.49 million, according to the budget document, which shows the executive director’s current salary of $153,005, the same for FY 2017. 

Of the total revenue for electric division, the budget shows that $44.68 million (a 13% decrease from FY 2016) will be collected through electric rates and other revenue. The rest comes from federal operating grants and other funding sources (totaling $2.45 million) as well as miscellaneous accounts receivable revenue (total $1.11 million).

As in past years, lawmakers are expected to raise questions during budget hearing on ASPA rates, especially electric and wastewater.

EXPENSES

The Electric Division has the highest budget at $47.09 million — as well as the number of employees with 338 employees; followed with the Water Division at $16.37 million with 77 employees; Wastewater Division at $12.76 million with 44 employees; and solid-waste at $4.34 million with 12 employees.

Largest expenditure for ASPA is in the material & supplies category at $30.55 million; followed by contractual service at $22.44 million; personnel cost $16.14 million; all others $7.59 million; equipment at $3.34 million and travel with only $489,500, according to the budget document.

It also shows that the largest single proposed expenditure, which is listed under materials & supplies, is $21.95 million allocated for fuel for ASPA generators.

CAPITAL IMPROVEMENT PROJECTS

In FY 2017, ASPA is the recipient of three separate federal funding, of just over $2 million, under the US Interior Department’s Capital Improvement Project (CIP) monies - $800,000 for water improvements; $1 million for water drilling; and $250,000 for landfill on Tutuila, Manu’a and Aunu’u.

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