Title
Approval of Budget Revisions 26-87 to Increase the Transfer from Water Distribution to Water Production for the Cost of Water
Recommended Action
I move that the Board of Public Utilities recommend Budget Revision 2026-87 as presented and forward to Council for consideration and approval.
Utilities Manager's Recommendation
The Utilities Manager recommends that the Board approve the motion as presented.
Body
The purpose of this budget revision is to make budget modifications necessary for year-end to properly distribute the cost of water transfer from Water Distribution to Water Production due to water production costs. Budget Revision 2026-73 previously increased the cost of water transfer budget by $750,000 from $4,200,000 to $4,950,000. The budget revision incorporated budget estimates for April 2026 through June 2026. Actuals through May 2026 exceeded the budget estimates. Budget Revision 2026-87 will increase the cost of water transfer budget by an additional $70,000 to cover June 2026. Since drought conditions persist, DPU is selling additional water than what was projected and hence the need for this budget revision.
Alternatives
If the budget revision is not approved, the Water Distribution Fund will exceed the FY2026 approved budget for the cost of water transfer to Water Production.
Fiscal and Staff Impact
The net fiscal impact to the Joint Utilities Fund is an increase to transfers in of $70,000 and an increase to transfers out of $70,000, resulting in a zero net impact to fund balance.
Attachments
A - Budget Revision 2026-87
B - FY2026 Cost of Water Budget Projection