Title
Approval of the DPU FY2026 Budget
Recommended Action
I move that the Board of Public Utilities approve the Fiscal Year 2026 budget as presented and forward to Council for adoption. I further move that the Board of Public Utilities approve the FY2026 budget option as presented and forward to Council for approval.
Utility Manager's Recommendation
The Utility Manager recommends that the Board approve the budget and budget option as presented.
Body
Attached is the proposed budget for FY2026 in the amount of $107,289,835 for total Joint Utilities Fund expenditures. Changes from the preliminary presentation in February are summarized on the table "Changes to Budget since February BPU Meeting" as Attachment A. The budget option is in the amount of $1,450,000 for the Trinity Drive Gas Line and Water Line replacement projects in conjunction with Public Works road project.
Rate Changes
The revenues proposed for FY2026 include assumptions of rate increases which have either previously been adopted by BPU and County Council or have ordinances being introduced tonight.
Electric Distribution 9.0% (ordinance introduced 3/19/25, effective 7/1/25)
Gas 5.5% (previously adopted)
Water Distribution 6.0% (previously adopted)
Sewer 7.0% (ordinance introduced 3/19/25, effective 7/1/25)
The combined impact on a residential customer is approximately $15.17 per month or 5.75% net increase.
Staffing Changes
The proposed budget does not include any changes to total Department FTEs. The FY26 budget continues to include 3 FTEs in Administration for overfill. Overfills will be used for backup due to eligible retirements, loss of employees, etc.
Per County Budget Office guidance, salary adjustments for the coming year are estimated at a 5% increase (3% structure and 2% merit) and a 5% increase in benefit costs to the County. These increases are for employees outside of the collective bargaining agreements with DPU. Salary increases negotiated in existing un...
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