05062026 CUAC FY26 Financial Update

Water Services Department
Financial Update
Citizens Utility Advisory Commission May 6, 2026

Water Services Financial Update
2
•FY26 Revenue and Sources 
•FY26 Expenses and Uses 
•FY27 Operating Budget Request
•FY27 Capital Budget Request

FY26 Revenue and Sources  ($M)
3
FY26
Forecast
9-mos YTD
Forecast
9-mos YTD 
Actual
Favorable
(Unfav)
Water Revenue
$  73.3
55.0
53.6
(1.4)
Sewer Revenue
46.8
35.0
36.8
1.8
Other Sources
73.1
12.8
13.4
.6
Revenue and Sources
193.2
102.8
103.8
1.0

FY26 Expenses and Uses ($M)
4
FY26 
Budget
9-mos YTD
Budget
9-mos YTD
Actual
Favorable
(Unfav)
O & M Expense
$ 93.0 
68.2
56.4
11.8
Debt Service
31.7
23.7
4.8
18.9
Capital Cash Outlay
86.7
51.1
33.1
18.0
Expenses and Uses
211.4
143.0
94.3
48.7
Increase (Decrease)
(18.2)
(40.2)
9.5
49.7
FY26 Budget O & M Expense includes $2M in contingency.

FY27 Operating Budget Request ($M)
5
FY26
Budget
FY27
Request
$ Increase
(Decrease)
% Difference
Salaries & Benefits
$  35.4
33.9
(1.5)
(4.2%)
Operating Expense
44.6
48.2
3.6
8.1%
Internal Charges
11.0
8.6
(2.4)
(21.8%)
Total Expenses
91.0
90.7
(0.3)
0.0%

Major Operating Expenses Drivers ($M)
6
FY26
Budget
FY27
Request
$ Increase
(Decrease)
% Difference
Chemicals
$ 10.8
12.0 
1.2
11.1%
Raw Water
8.8 
9.3 
0.5
5.7%
Equipment Maintenance
7.9
7.9
0.0
0%
Services & Supplies
11.1 
12.1 
0.8
7.2%
SROG - 91st WWTP
5.6
6.4
0.8
14.3%

FY27 Water Supplemental Requests 
7
Raw Water Cost
$
475,000
Chemical Costs
1,160,000
SROG Costs
775,000
Supplies & Services
1,013,000
Other Costs
57,333
3 FTEs – Sr Sys Adm, Ind Mtn Planner, Water Tech
433,000
Total Requests
$ 
3,913,333
This does not include adjustments to Salaries & Benefits or Internal Charges

Capital Improvement Plan (CIP)
FY27-31 5-year Cash Flow
8
FY27
FY28
FY29
FY30
FY31
Total  
Water 
Projects
$66.6
54.1
64.2
59.0 111.5
355.4
Wastewater 
Projects
31.4
25.9
28.9
27.5
34.5
148.2
Cash Flow
$98.0
80.0
93.1
86.5 146.0
503.6
FY27 includes FY26 carryover of $21.5M of unspent budget

Water Services Financial Update
9
Questions