PUBLIC UTILITIES ADVISORY BOARD AGENDA ITEM
ACTION REQUESTED:
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Receive 2025 Electric Utilities Fund Review
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DEPARTMENT: Electric Utility
SUBMITTED BY: Electric Utility Staff with Finance Staff Input
BOARD/COMMISSION REVIEW:
N/A
PURPOSE:
The purpose of this memorandum is to present the preliminary and unaudited financial results for the Electric Utilities Fund for the fiscal year ending December 31, 2025
BACKGROUND:
The Electric Utilities Fund operated with a total revenue budget of $166.4 million and a total expense budget of $166.8 million for the 2025 fiscal year. Preliminary year-end actuals indicate total revenue of $178.3 million (107.2% of budget) and total expenses of $179.6 million (107.7% of budget).
While the fund was budgeted to operate at a planned deficit of approximately $0.4 million (attributed largely to capital improvement schedules), actual performance resulted in a deficit of approximately $1.3 million.
This deviation is primarily structural rather than operational; substantial deferrals in Capital Outlay significantly increase expenditures ($2.5M for Tollway Substation at the end of 2025).
Please note that the Finance Department is currently in the process of applying the final accruals and conducting a reconciliation to close the Electric Capital Fund. These standard year-end closing activities, which occur prior to the formal audit review, are expected to alter the preliminary results presented in this report.
DISCUSSION:
Revenue Analysis
Total Revenue for the year was $178.3 million against a budget of $166.4 million, resulting in a variance of ($11.9 million) or 107.2% of budget. The revenue variance is largely linked to financing activities rather than core utility collections.
1. Bond Sale Proceeds: The primary driver for the revenue variance was an increase in bond issuance.
? Budget: $7.5 million
? Actual: $10.0 million (133.9%)
? Analysis: Borrowing was likely increased to align with the revised timeline of capital p...
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