PUBLIC UTILITIES ADVISORY BOARD AGENDA ITEM
ACTION REQUESTED:
title
Receive the Water Utility Financial Activity Summary
body
DEPARTMENT: Finance Department
SUBMITTED BY: Ray Munch, Director of Finance
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 Water Utilities and Phosphorus Funds. This report analyzes year-to-date activity within the Water Utilities and Phosphorus Funds through February of 2026.
DISCUSSION:
Revenues
Revenues through February were $15.2M against a projection of $14.6M, resulting in a variance of $0.6M, or 104.1% of projected. The revenue variance is in part a reflection of fluctuations in consumption, influenced by various real world factors, versus what’s projected within the rate study. Notably, two categories came in slightly below projection: Commercial Charges came in at $2.8M against a projection of $2.9M (97.1%), while Residential Charges came in at $5.2M compared to a projection of $5.5M (95.5%).
Wastewater Charges through February came in at $6.7M against a projection of $5.7M (117.7%). This favorable variance is primarily attributable to an amendment to the IGA between Naperville and Warrenville, which was updated to reflect significant upcoming investments at the SWRC and resulted in a new payment of $1.3M. Connection Charges appeared strong compared to projections, coming in at $223K against $175K, but are down 35.7% compared to the prior year.
Other revenues are in line with projections and/or prior years.
Expenses
Expenses through February were $10.8M against a projection of $9.5M, resulting in a variance of $1.3M or 113.1% of budget. Expenditures for the Utility are primarily over budget due to spending on major capital improvements, with spending elsewhere being in line with projections and/or prior years.
Purchased Water
Purchased Water represents the fund's single largest expenditure. Costs here tracked slightly below projection at $4.2M versus $4.4M (95.6%). Purchased Water trends depend on weather and consumption patterns throughout the year.
Capital Improvements
As previously mentioned, the primary driver of the overall expense variance is Infrastructure, where actuals of $3.0M significantly exceeded the $1.4M projection (215.6%). Capital improvement spending in the Utility that was deferred last year is being realized this year, with approximately $1.5M attributable to South Plant Capacity Upgrades and Improvements.
Salaries & Benefits
Salaries and benefits budgeted within the Water Utilities Fund support personnel expenses for staff both in and outside the Water Department. Regular Pay actuals of $1.3M came in below the projected amount of $1.7M (81.8%), but is consistent with spending at this same point last year. Insurance Benefits similarly came in under projection at $0.3M against $0.4M (87.1%), with variances being attributable to individual employee plan selections. Overtime on the other hand exceeded projections by $40K (173.2%), but came in $16K below the prior year.
Other Operating Expenses
Contributions to Other Entities came in at $48K, representing 47.4% of the $101K projection, as Naperville Development Partnership has only received an initial payment for their Economic Development grant at this time. The second payment will be made later in the year. Operational transfers for the fund far exceeded its $61K projection at $305K, or 499.1%, though this mirrors spending from the same point last year.
Year-Over-Year Comparison
Revenues for the period increased by 11.4% ($13.7 million in FY25 to $15.2 million in FY26). Expenses for the period increased by 31.6% ($8.2 million in FY25 to $10.8 million in FY26).
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) |