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Staff flags communications utility reserves, cautions against counting on extra revenue
Summary
Staff reported the communications/telecom utility fund had an elevated balance ($2,620,000 as of 12/31/2024) and recommended not relying on that as a revenue source in the 2026 budget without more analysis; staff said future maintenance costs could be significant.
City staff briefed the council on the communications utility’s fund balance and potential for contributing additional revenue to the general fund.
Steve said the communications utility’s fund balance has increased substantially and that the balance — as of Dec. 31, 2024 — was $2,620,000. Staff noted the fund balance is large relative to the utility’s annual operating expenses but cautioned that the utility may face significant maintenance costs in the near future that would reduce the balance.
In discussion, council members asked how much the city currently pays annually for communications services. Steve estimated the annual amount at roughly $45,000. Staff recommended against including additional communications-utility revenue in the 2026 budget because any contribution is not “fully baked” — additional analysis, clearer estimates of upcoming maintenance costs and conversations with the utility would be required before treating that fund balance as available general revenue.
Councilmember Wurman and others urged that the issue be a high priority for staff after the budget process, arguing the city should look holistically at its utilities and city finances. Staff agreed additional analysis and conversations with Marshfield Utilities are warranted before any transfer is included in a future budget.
