City presents midyear utility-fund review; wastewater revenues fall short but fund projected positive
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Summary
Budget manager Jacob Bridal Cid reported a midyear review showing the solid waste fund projected to post a $907,000 surplus, the wastewater fund projected to end with a $1.9 million surplus despite a $2.3 million revenue shortfall from industrial customers, and the water fund projecting a $409,000 use of fund balance; the board adopted a supplemental-appropriation resolution.
Jacob Bridal Cid, the city’s budget manager, presented the midyear financial review for the city’s enterprise utility funds and recommended adjustments and a resolution for supplemental appropriations.
He reported the solid waste and street-sweeping fund is expected to finish the year about $116,000 over revenue estimates and about $286,000 under budget in expenditures, producing a projected surplus of roughly $907,000 (an increase of about $402,000 from the originally budgeted $505,000). The wastewater fund, he said, is projected to post a $1.9 million surplus for fiscal year 2026 despite revenues falling about $2.3 million below estimates, a shortfall attributed to lower sewer-fee revenue from two large industrial customers due to increased production efficiency. For the water fund, Bridal Cid said revenues are slightly higher than budget and expenditures lower, resulting in a projected $409,000 use of fund balance—an improvement relative to the originally budgeted $904,000 use.
Staff recommended and the board moved and adopted a resolution to approve the use of fund balance for targeted supplemental appropriations across the enterprise funds to cover identified variances and reclassifications. The budget manager noted that a forthcoming rate study will incorporate the wastewater facility expansion costs discussed in the facilities-plan presentation and that staff is running financing scenarios to present in future meetings.
