Board reviews FY27 proposed municipal utility budget projecting $5.7 million net

Ashley Esquivel, the utility system budget manager, presented the FY27 proposed municipal utility budget and highlighted revenues, expenses and reserve plans.

"The FY 27 proposed budget does include 82,600,000 in revenues and 76,900,000 in expenses which does result in a net operating result of 5,700,000," Esquivel told the board. She noted the five-year rate plan is bringing all three utilities (electric, water and wastewater) to projected positive net operating income for FY27 and highlighted $5.5 million in planned contributions to capital funds and reserves, including water capital, wastewater capital, an electric vehicle reserve and a substation reserve.

Esquivel said working capital is projected at about 171 days — roughly twice the board's 90-day target — and that the budget includes funding for competitive salary increases and two new full-time positions to address workload and system growth. She encouraged board members to consult the full budget book and to contact her or finance staff with follow-up questions; no action was required at the meeting.