PUBLIC UTILITIES ADVISORY BOARD AGENDA ITEM
ACTION REQUESTED:
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Receive the 2025 Year-End Budget Report
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director Water Utilities
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Water Utilities Fund operated with a total revenue budget of $123.2 million and a total expense budget of $138.9 million for the 2025 fiscal year. Preliminary year-end actuals indicate total revenue of $108.1 million (87.7% of budget) and total expenses of $104.0 million (74.9% of budget).
The fund concluded the fiscal year with a significant positive variance in its net position relative to the adopted budget. While the fund was budgeted to operate at a planned deficit of approximately $15.7 million (attributed largely to capital improvement schedules), actual performance resulted in a surplus of approximately $4.1 million.
This deviation is primarily structural rather than operational; substantial deferrals in Capital Outlay significantly reduced expenditures, offsetting lower-than-anticipated revenue from bond proceeds.
Please note that the Finance Department is currently in the process of applying final accruals and conducting a reconciliation to close the Water Utility Funds. These standard year-end closing activities, which occur prior to the formal audit review, are anticipated to alter the preliminary results presented in this report.
DISCUSSION:
Fund Structure Update:
During the 2025 fiscal year, the Finance Department initiated the closing of the Water Capital Fund. As reflected in the 2026 Approved Budget, this fund is formally retired as of December 31, 2025. Moving forward, all capital improvement projects (CIP) and associated debt service will be accounted for directly within the Water & Wastewater Utility Fund. This consolidation eliminates the need for interfund transfers for capital projects and streamlines financial reporting.
Revenue Analysis
Total Revenue for the year was $108.1 million...
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