Title
Approval of the DPU FY2027 Budget
Recommended Action
I move that the Board of Public Utilities approve the Fiscal Year 2027 budget (substituting gas fund option 2) as presented and forward to Council for adoption.
I further move that the Board of Public Utilities approve the FY2027 budget option as presented and forward to Council for approval.
Utilities 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 FY2027 in the amount of $94,688,744 for total Joint Utilities Fund expenditures. Changes from the preliminary presentation in February are summarized in the table "Changes to Budget since February BPU Meeting" as Attachment A. The budget option is in the amount of $900,000 for the Fairway Water project.
Rate Changes
The revenues proposed for FY2027 include assumptions of rate increases, which will have ordinances being introduced on April 1, 2026.
Electric Distribution: 8.0% (previously adopted)
Gas: 9.0% (ordinance to be introduced 4/1/26, to be effective 7/1/2026)
Gas Option 2
Discuss adding a Gas Recovery Rate of $0.25 for FY2027 & FY2028 to bring cash to a positive cash flow by end of FY2028 and decrease future rate increases FY2029 through FY2036
Water Distribution: 8.0% (ordinance to be introduced 4/1/26, to be effective 7/1/2026)
Sewer: 7.0% (previously adopted)
The combined impact on a residential customer is approximately $20.27 per month or 7.02% net increase.
Changes to Budget Since February BPU Meeting
FY2027
• Joint Utility Fund Expenditures for FY2027are $94,688,744 compared to total presented in February of $100,071,991 for total Joint Utilities Fund expenditure.
• Electric Production:
o Expenditure
§ Purchase Power cost decreased $6,530,997, updated purchase power costs
§ Adminis...
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