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Utilities, airport, transit and other enterprise funds generally solvent; electric and water faces longer‑term pressure
Summary
Finance staff said most enterprise funds (electric, airport, transit, sanitary sewer, stormwater, solid waste, parking and railroad operations) are solvent under current plans, though electric and water may require rate discussion before 2029. Transit operations remain subsidized by the transportation sales tax.
Finance staff briefed council on enterprise funds, reporting most funds as stable in the near term but flagging future pressure for electric and water if current trends continue.
On the electric utility, staff said the fund is in "a relatively okay spot for the next couple of years" but may dip below targets around 2029 unless action is taken; staff advised that a rate increase discussion may be needed one to two years before an anticipated shortfall. ‘‘We do not include a rate increase in these projections; we just have a 1% growth due to population growth,’’ Lou said.
For water, staff said a dedicated water presentation and cost‑to‑service study is scheduled for the next pre‑council meeting; staff did not present water rate changes at this pre‑council. Sanitary sewer and stormwater projections show spending down cash above targets in some years but no planned bond issuances for the period shown.
Transit and airport are supported in part by the transportation sales tax. Transit receives roughly a $3 million annual transfer and an operating match; staff said the transportation sales tax is also used for airport and public‑works needs and that the split among airport, transit and public works is roughly a third each in typical years but may shift to meet specific capital needs. The airport also carries debt service on bonds for its terminal.
Other enterprise items discussed: the railroad/transload facility has begun to see revenue increases and will carry more of its costs internally going forward; the parking utility includes large upcoming CIP (garage improvements) that depress near‑term balances but are expected to reverse in subsequent years; solid waste has substantial cash above target but includes a planned landfill/cell project in FY‑26–27; fleet and IT internal service funds are intended to be kept near flat and charges to departments will be adjusted if those funds move toward deficits.
Staff said no formal rate changes were proposed at the pre‑council meeting; the presentation flagged areas for future council consideration and for coordination with advisory boards where applicable.
