PUBLIC UTILITIES ADVISORY BOARD AGENDA ITEM
ACTION REQUESTED:
title
Receive the Financial Activity Summary through February 2026
body
DEPARTMENT: Electric Utility
SUBMITTED BY: Finance Department
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The 2026 Fiscal Year began on January 1, 2026. As part of the City’s ongoing efforts to maintain fiscal responsibility, monthly budget reports are produced. This report tracks year-to-date revenues and expenditures for all Funds, including the Electric Utility Fund and the Renewable Energy Fund. This report analyzes year-to-date activity within the Electric Utility and Renewable Energy Funds through February of 2026.
DISCUSSION:
Electric Utility Fund Revenues
2026 Electric Fund revenues are budgeted at $177.84M; this amount includes $162.27M in Electric Charges, and $10M in new debt to support the Utility’s continued efforts around capital upgrades. Through February revenues collected total $27.96M which represents 15.7% of the budget, and 92.4% of the projected revenues through February.
Electric Charges through February total $27.35M which represents an increase of 4.3% from this point in 2024. Increasing energy costs in 2026 have led to strong PPA revenue growth through February. PPA revenues total $1.82M through February which is an increase of 31.4% from this point in 2025, or roughly $435K.
Installation Fees are down significantly compared to this point in 2025. Through February, Installation Fees total $355,955, which represents 8.9% of the budget and a decrease of 81.3% from 2025. The year-over-year decrease is a largely a result of the way Pulte has submitted payment for the buildout of Polo Club. In 2025, a payment exceeding $1M was received in January related to the development of Polo Club which significantly drove Installation Fees up at the start of 2025.
Revenues related to the sale of property have been strong through February, totaling just under $71,000. This is being driven by the sale of an old transformer in January.
Renewable Energy Fund Revenues
2026 Renewable Energy Fund revenues are budgeted at $287,176. The revenues received in this Fund come from utility billing through residents who chose to participate in the renewable energy program. Revenues received through February total $48,950 which accounts for 17% of the budget and 102% of the projected revenues through February.
Electric Utility Fund Expenses
The Electric Utility Fund has a total budget of $177.31M in 2026. Expenditure across the Fund through February totaled $24.33M, accounting for 13.7% of the total budget. Through this point in the year, expenses are down 5.3% compared to 2025.
Purchased Electricity
The largest expenditure that hits the Electric Utility Fund is the cost associated with Purchased Electricity. Expenses related to Purchased Electricity through February total $20.30M, representing 17.7% of the total Purchased Electricity budget and an increase of 2.1% from 2025.
The cost and amount of electricity purchased has continued to increase, resulting in year-over-year increases through February.
Capital Improvements
Capital investments account for the second largest budgeted item across the Fund. The total capital budget across the Electric Utility Fund in 2026 is $27.74M. Expenses through February total $172,309, representing a year-over-year decrease of 80.1%.
The reduction in capital spend is largely attributed to previously back-ordered transformers arriving in February of 2025 which drove the capital spend up at the start of 2025.
Although capital spending across the Electric Utility Fund is low through February, staff does anticipate a significant increase in spending before the end of the first quarter.
Salaries & Benefits
Personnel expenses across the Electric Utility Fund support the salaries and benefits for staff both in and outside the Electric Department. Total personnel expenses through February are $2.73M, representing 11.9% of the budget.
Both salaries and benefit related expenses are up compared to 2025 due to annual wage increase and the rising cost of medical insurance, however they remain within projections through February.
Other Operating Expenses
Expenditures related to Purchased Items total $504,988, or 24.8% of the total Purchased Items budget in 2026. Spending nearly 25% of the budget through February would indicate expenditures are higher than anticipated at this point in the year. However, staff has yet to process the quarterly warehouse to capital transfer, which will reduce Purchased Item expenditures while increasing Capital expenditures.
Purchased Services expenses total $821,323 through February, which represents 9.4% of the budget and an increase of 2.3% compared to 2025. Through February, nearly 31% of the money spent on Purchased Services has been related to credit card fees associated with utility bill payments.
Another 45% of the spending is related to Software and Hardware Maintenance where actuals total $368,113, which is 19.2% of the Software & Hardware Maintenance budget. A number of software renewals require the City to pay for the full the service at the start of the year, resulting in higher expenditures earlier in the year.
Renewable Energy Fund Expenses
The Renewable Energy Fund has a budget of $285,000 in 2026. Expenditures across the Fund through February totaled $103,910, accounting for 37.1% of the total budget and 175.9% of the projections through February. These are all related to renewable energy grants.
Cash Balances:
|
Fund |
Cash Balance |
|
Electric Utility Fund |
4,902,320 |
|
Renewable Energy Fund |
280,663 |
|
Phosphorus Fund |
24,818,109 |
|
Water Utility Fund |
30,680,724 |
|
Water Capital Fund |
(11,590,716) |