Proposed $5.8 million electric-budget increase is almost all for buying power

Nearly 99% of a proposed $5.77 million increase in Starkville Utilities’ electric spending budget would go toward purchased power, according to finance materials prepared for the Mississippi city’s Oct. 20 aldermen meeting.⁠[1]

The fiscal 2026 amendment would raise the division’s spending budget from $45.63 million to $51.40 million. Purchased-power spending would account for $5,696,934 of the increase, bringing that budget line to $40 million. On the revenue side, budgeted electric sales would rise by $5,261,226 to $47.5 million.⁠[1]

The accompanying preliminary report shows how far year-end results diverged from the original plan. For the year ended Sept. 30, electric-sales revenue was listed at $50.14 million—$7.90 million, or 18.7%, above the original budget. Purchased-power costs were $39.24 million, exceeding their original budget by $4.94 million, or 14.4%.⁠[1]

Total reported revenue of $54.68 million exceeded expenses of $49.37 million by $5.31 million. But that is a preliminary revenue-over-expenses figure, not a final year-end result. The utility explicitly says its actuals are based on estimates because of the timing of month-end closing, final revenue billings and expense accruals.⁠[1]

Acceptance of the September financial statements and approval of the fiscal 2026 budget adjustments were separate requests on the Oct. 20 agenda. These agenda materials do not establish whether aldermen approved either request.⁠[1]