PUBLIC UTILITIES ADVISORY BOARD AGENDA ITEM
ACTION REQUESTED:
title
Receive the Financial Activity Summary through July 2026
body
DEPARTMENT: Finance Department
SUBMITTED BY: Traci Marrocco, Deputy Director of Finance
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
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 Water Utilities and Phosphorus Funds. This report analyzes year-to-date activity within the Water Utilities and Phosphorus Funds through July 2026.
DISCUSSION:
Revenues
Revenue through June across both funds totaled $54.43 million. This is a 21.2% decrease over the same period in 2025, and 0.7% lower than the current year projection of $54.82 million. The large variance year-over-year (YOY) is due to an additional $20 million in bond sale proceeds at this time in 2025. Below is a summary of major revenues and their performance against the current year-to-date projection and the same period last year.
Variance in Water and Wastewater Charges are in part a reflection of fluctuations in consumption, influenced by various real world factors, versus what’s projected within the rate study.
Revenues Trending Higher Compared to Budget
• Usage Charge is 9.3% above projections, and increased YOY by 22.9%, or $3.80 million.
Revenues Trending Lower Compared to Budget
• Capital Charge is 6.3% below projections, but increased YOY by 11.7%, or $0.07 million.
• Customer Charge is 1.6% below projections, but increased YOY by 11.6%, or $0.65 million.
• Retail Rate is 7.4% below projections, but increased YOY by 6.4%, or $0.58 million.
• Wholesale Charge is 9.7% below projections, and decreased YOY by 2.1%, or $0.31 million.
• Phosphorus is 5.1% below projections, but increased YOY by 9.3%, or $0.10 million.
Expenses
Expenditures across both funds total $59.81 million. Total expenditures are 20.1% below current projections and 24.9% higher than this time last year. Below is a summary of major expenditures and their performance against the current year-to-date projection and the same period last year.
Expenditures Trending Lower Compared to Budget
• Operational Services is 37.6% below projections, and decreased YOY by 9.5%, or $0.12 million, mainly attributable to a decreased volume of sanitary sewer cleaning.
• Architect & Engineering Services is 31.5% below projections, and decreased YOY by 19.9%, or $0.44 million, due to less extensive design work on Springbrook Water Reclamation Center projects
• Operating Supplies is 37.6% below projections, and decreased YOY by 9.5%, or $0.04 million.
• Purchased Water is 10.0% below projections, but increased YOY by 0.5%, or $0.07 million, trending on weather and consumption patterns throughout the year.
• Infrastructure is 29.2% below projections, but increased YOY by 80.7%, or $11.70 million, due to the Utility making significant progress on several Springbrook projects, in particular the South Plant Capacity Upgrades and Improvements. Other projects of note include water main replacements in the Saybrook and Ogden/Washington areas.
• Vehicles & Equipment is 35.2% below projections, and decreased YOY by 19.5%, or $0.13 million; 2026 has seen a larger volume of vehicle purchases throughout the year at lower prices than 2025.
Expenditures Trending Higher Compared to Budget
• Overtime Pay is 69.7% above projections, and increased YOY by 5.7%, or $0.02 million.
• Benefits & Related is 3.5% above projections, and increased YOY by 15.7%, or $0.31 million, attributable to increased contributions by the City for employee insurance.
Year-Over-Year Comparison
Revenues for the period decreased by 21.2% ($69.09 million in FY25 to $54.43 million in FY26). Expenses for the period increased by 24.9% ($47.88 million in FY25 to $59.81 million in FY26).
Cash Balances:
|
Fund |
Cash Balance* |
|
Electric Utility Fund |
3,813,436 |
|
Renewable Energy Fund |
242,107 |
|
Phosphorus Fund |
25,962,766 |
|
Water Utility Fund |
43,348,481 |
|
Water Capital Fund |
(11,619,108) |