Los Alamos Board of Public Utilities forwards $107.3 million FY26 budget to council; approves budget option

The Board of Public Utilities on March 19 approved the Department of Public Utilities’ proposed fiscal year 2026 budget and a budget option and will forward both to county council. The board voted unanimously, 5-0, to approve the package and the budget option.

The budget totals $107,289,835 in joint utilities fund expenditures. The department also submitted a budget option of $1,450,000 intended to support joint capital projects and potential redirection of the revenue transfer under the county ordinance governing transfers. Karen Bridal and staff walked the board through updates made since the February draft: an interdepartmental charge reallocation that changed some internal allocations, a late requirement for additional wastewater testing that added roughly $145,000 to wastewater costs, corrections to fund-flow revenue assumptions (including volume and bond subsidy adjustments), and updated interest assumptions for utility reserves. Bridal said staff had worked with the county finance office to finalize required schedule-of-funds documentation.

Chair Sherry Gibson framed the drivers for the increases as largely inflation and infrastructure needs and said the utility must both fund operations and rebuild reserves after a period of restrained rate adjustments. “My conclusion is that the main driver is inflation,” Gibson said; she recommended the board and staff continue to refine cost drivers and identify controllable efficiencies.

Board members discussed public outreach and the need for clear, simple explanations for customers. Bridal noted the department provides frequently asked questions, press releases, social media outreach and customer‑care training to help customers understand bill changes. Staff also provided a typical-bill chart in the packet showing combined residential impacts across electric, gas, water and sewer: using staff’s typical usage assumptions, a composite monthly utility bill was shown at about $188.10 in 2015, $263.75 in 2025, and projected to be $278.92 after the proposed rate changes (figures presented by staff and included in the packet).

Three members of the public raised affordability concerns during public comment, including a resident who said seniors and households on fixed incomes would be hurt by repeated increases. Reger, an online commenter, warned higher local costs push people to live farther from town, which could counteract any climate or transportation goals. Bridal and other staff pointed to the utility’s assistance programs for eligible customers and said the department would continue outreach.

Motion and vote: A board member moved to approve the FY26 budget and the budget option and another member seconded; the roll-call vote was Member Heffner — yes; Member Hollingsworth — yes; Member Nochley — yes; Member Stromberg — yes; and Member Gibson — yes. The motion passed 5 to 0. The board forwarded the budget and the budget option to county council for adoption.

Ending: The approved materials include detailed reserve and fund schedules required by county charter and ordinance. Staff said there is no proposed change to employee counts in FY26 and that staff will return with additional public outreach materials and responses to detailed public queries about bill impacts.