PUBLIC UTILITIES ADVISORY BOARD AGENDA ITEM
ACTION REQUESTED:
title
Receive the Financial Activity Summary through July 2026
body
DEPARTMENT: Electric Utility
SUBMITTED BY: Finance Department
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 Electric Utility Fund and the Renewable Energy Fund. This report analyzes year-to-date activity within the Electric Utility and Renewable Energy Funds through July 2026.
DISCUSSION:
Revenues
Through July Electric Utility and Renewable Energy Fund revenues total $95.8M of this amount nearly $94M is tied to charges for electricity. Although overall revenue between the two funds is down by 6.5% or roughly $6.6M compared to this point in 2025; revenues are still trending above projection through July accounting for 102.6% of projected revenue through this point in the year. The year over year decline in revenues can largely be attributed to the timing of the new debt issuance, however more detailed information is outlined below.
Electric Utility & Renewable Energy Fund Revenues ($ in millions)
|
|
2026 Budget |
2026 Actuals |
Variance to YTD Projection |
Variance to 2025 YTD |
|
Electric Charges |
$162.56 |
$93.68 |
3.3% |
6.1% |
|
Charges for Service |
$0.15 |
$0.05 |
-49.4% |
-40.2% |
|
Fines & Fees |
$4.44 |
$1.59 |
-31.0% |
-57.2% |
|
Interfund Transfers |
- |
$0.02 |
N/A |
-89.4% |
|
Debt Issuance |
$10.00 |
$0.19 |
N/A |
-98.1% |
|
Other Revenues |
$0.98 |
$0.30 |
-18.8% |
114.9% |
|
Total |
$178.13 |
$95.83 |
2.6% |
-6.5% |
Revenue trends through July
• Renewable Energy Fund revenues total $173,373 through July, accounting for 60.2% of the total budget, and representing an increase of 1.4% compared to this point in 2025
• Electric Charges continue to trend over projection through July, totaling $93.5M, representing a 103.3% of the projected revenue through July. Increased cost for electricity is resulting in higher than anticipated revenues and increase of 6.1% for electric charges compared to this point in 2025.
• As a result of increasing cost of energy in 2026 PPA revenues continue to be strong through July across all customer classes totaling $4.6M, an increase of 26.2% compared to this point in 2025.
• Fines & Fees are down significantly compared to 2025 as a result of a decline in installation fees. Installation fees remained high in 2025 due to developments such as Polo Club continuing to be built out. Through July Installation Fees total $1.4M, which represents a 57.2% decline compared to 2025.
• The Other Revenue category is a combination of a few revenue sources including grants, sale of property, and reimbursement programs. Through July revenues in this space totaled nearly $301,000. While year-over-year revenues in this space are up, they are under projection through July due to a DOE grant no longer being received.
• Debt Issuance through July has decreased by 98.1% compared to this point in 2025, this is just a timing issue. Bond proceeds were received earlier in 2025 than they will be in 2026.
Expenses
Electric Utility & Renewable Energy Fund expenses through July total $93.4M, representing 52.6% of the 2026 budget and a decrease of 2.3% compared to this point in 2025. The single largest expense through July is the cost associated with Purchased Electricity, totaling $63.3M; although this space is trending over projection by 2.4%, it is essentially flat to the 2025 actuals through July. Additional expense trends are outlined below.
Electric Utility & Renewable Energy Fund Expenses ($ in millions)
|
|
2026 Budget |
2026 Actuals |
Variance to YTD Projection |
Variance to 2025 YTD |
|
Benefits & Related |
$5.28 |
$2.77 |
-6.2% |
18.3% |
|
Capital Outlay |
$27.74 |
$8.77 |
-22.1% |
-25.0% |
|
Debt Services |
$1.65 |
$0.34 |
-29.0% |
-24.1% |
|
Grants & Contributions |
$0.67 |
$0.48 |
9.0% |
19.7% |
|
Interfund Transfers |
$1.38 |
$0.80 |
0.0% |
-1.2% |
|
Purchased Items |
$2.04 |
$4.26 |
206.3% |
-7.2% |
|
Purchased Electricity |
$112.40 |
$63.33 |
2.4% |
0.6% |
|
Purchased Services |
$8.75 |
$3.03 |
-21.3% |
-22.5% |
|
Salaries & Wages |
$17.68 |
$9.56 |
-4.9% |
13.1% |
|
Total |
$117.59 |
$93.35 |
0.3% |
-2.3% |
Expense trends through July
• Personnel cost, benefits and wages, combined to total $12.3M through July, accounting for 94.8% of projection and representing an increase of 14.2% compared to 2025. While expenses are trending under projection, staff did anticipate the overall cost increasing significantly year-over-year due to rising cost of insurance premiums and programed wage adjustments.
• The Renewable Energy Grant program remains popular with actuals totaling $255,421, accounting for 91.2% of available funds budgeted for Renewable Energy Grants in 2026.
• Purchased Items through July total $4.26M which represented 209.4% of the 2026 budget for Purchased Items, however, this number will be significantly reduced once the third quarter warehouse to capital material transfer takes place in October.
• Purchased Electricity totals $63.3M, accounting for 102.4% of the projected expense through July. Both Delivery and Energy Charges are up through July, Delivery Charges total $12M and have increased by 7.3%; while Energy Charges total $32M and have increased by 2.1%.
• Capital Outlay totals $8.8M, representing 31.6% of the total capital budget. Through July capital expenses are down by 25% compared to this point in 2025, however the Utility continues significant investments in a number of areas including Cable Replacements, Utility Metering Upgrades, and New System Installations.
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) |