TITLE
2027 Capital Operating Budget Requests
Body
RECOMMENDATION
Staff request the Board to review and approve the Water Utility’s (Utility) 2027 Operating and Capital Budget requests.
BACKGROUND
The Utility has completed the 2027 Capital and Operating budget requests for the Common Council and the Mayor’s review and eventual adoption by the Common Council. The summary of the budget requests is discussed below.
Operating Fund
The Utility is requesting $53.9M in operating expenses for 2027. This is comprised of:
$27.1 million in operations and maintenance (O&M) expense
$19 million in debt service
$7.8 million in payment to the city in lieu of taxes (PILOT)
The Utility also plans to transfer $17.7M from the Operating Fund to the Construction Fund to fund $10M of expense depreciation funded water main projects and $7.7M of reserve funded ongoing capital programs. The Utility is budgeting $71.6M in revenue for 2027 resulting in an ending fund balance of $16.8M. Details of the fund balance summary is provided in Attachment C.
Details of the Operating Budget request are included in Attachment A.
Construction Fund
The Utility is requesting $18.8M for the 2027 Capital Improvement Program. The 2027 Capital budget includes:
Water Main Programs - $12.6 million
Facility Improvements - $3.6 million
Vehicles and Equipment - $1.1 million
Other projects and ongoing programs - $1.5 million
Total $18.8M
The 2027 Capital budget will be funded with $1.1M from the Safe Drinking Water Loan Program, $10M from expense depreciation and $7.7M from Water Utility reserves. The Utility is projecting 2027 ending fund balance of $3M in the Construction Fund. Details of the fund balance summary is provided in Attachment C.
Details of the Capital Budget request are included in Attachment B.
ATTACHMENTS:
A. 2027 Operating Budget Request
B. 2027 Capital Budget Request
C. 2027 Operating & Capital Fund Balance Summary