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Annual Budget Process

Just as you have a budget to pay for your household needs, JEA has a budget to pay for its business requirements to provide reliable services to our approximately 420,000 electric customers, 305,000 water customers and 230,000 sewer customers, rain or shine, summer or winter, 24 hours a day, 365 days a year. It is a responsibility we take seriously and includes ensuring the upkeep of our current facilities and technologies, planning for future growth and new technologies, and keeping pace with local, state and federal environmental requirements meant to keep our air and river clean.

We want you to understand how the process works.

 

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Each year, JEA goes through a rigorous budget development process that begins months in advance of the beginning of the next fiscal year. Here’s a look at who works on and approves JEA’s budget and when each part of the process takes place.

March  
JEA area directors and managers assess and document the resources they need for the coming year. Managers submit their budget requests to their directors, who in turn submit their budget request for their entire area to their executive management team member.

March/April  
JEA’s Senior Leadership Team reviews the requests, makes adjustments if necessary, and drafts a preliminary budget. The SLT is made up of the chief executive officer and the operating, financial, information, compliance, customer, public affairs and human resources officers.

April  
JEA’s budget office refines the proposed budget based on projected revenues and expenses.

May  
JEA Board’s Finance and Audit Committee is presented the proposed budget by JEA staff. The Committee reviews it and suggests changes for clarification or as appropriate.

June  
JEA Board of Directors reviews and votes on the proposed budget, usually at the June Board meeting.

July 1  
JEA’s CEO submits the proposed budget to the President of the City Council. The budget is then turned over to the City Council Auditors for review. They request clarification or additional information as appropriate.

August   
Council Auditors review and discuss the JEA budget with the City Council Finance Committee. JEA’s CEO and Chief Financial Officer are present to answer questions.

September  
Normally, at the first City Council meeting in the month, the Council holds a public hearing on the budgets for all City departments and independent agencies, including JEA. Later in the month, the Council approves the budget.  

October 1  
The new fiscal year begins and the approved budget is released.  

Annual Budget Expenditures by Area

O&M or Operations and Maintenance includes salaries and benefits, materials and supplies to do our business, vehicle maintenance and repair, pavement repair, roof repair, etc.  

Debt Service repays loans for electric generation, substations and other very large capital investments. On the water and sewer side, it repays loans for water and sewer plants and other very large capital investments. This would be equivalent to a customer’s mortgage payment. 

Other Capital Outlay is money set aside to pay for smaller capital projects. Having this fund allows us to pay for these things directly instead of borrowing money. This is the same idea as if you saved up to buy a car with cash rather than borrowing the money and paying all that interest.

R&R or Renewal and Replacement dollars go to keep the electric, water and sewer systems in good operating condition. Weather takes a toll on wires, poles and various switching equipment. Periodically they must be repaired or replaced to maintain reliability, as do water and sewer pipes, which age and require replacement.

City Contribution is the portion of JEA’s electric services budget that is collected by JEA for the City of Jacksonville to support general government services not related to JEA. 

Non-Fuel Purchase Power is usually to purchase electricity from another source that is less expensive than electricity that we can produce. This is an electric business expense only. 

Fuel used by JEA includes coal, petroleum coke (a Byproduct of the oil refining process), natural gas, diesel oil and residual oil. Fuel costs have been extremely volatile since 2003–2004, and fuel now takes a much bigger bite out of JEA’s electric system budget. This is an electric business expense only. 

Other includes expenses such as an emergency fund, uncollectable accounts, and smaller contracts and contingencies.

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