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Board restores electric engineering manager amid debate over depreciation, staffing and rates
Summary
Board voted 6–1 to restore an electric engineering manager position as staff and members debated enterprise depreciation, days of cash on hand and the trade-offs between staffing and building cash reserves ahead of planned capital projects.
The Board of Auburn voted on May 5 to restore the vacant electric engineering manager position after a lengthy discussion about staffing trade-offs, depreciation in enterprise funds and the electric utility's near-term capital needs.
Staff described the electric department's recommended budget and cash position: "Total proposed budget as of right now before we make the adjustment is $75,630,980. It reflects an 8.5 increase," a staff presenter said. The electric fund was reported at about 81 days of cash on hand, below the board�s 90-day benchmark; staff and several aldermen said improving days of cash on hand is a priority ahead of large capital projects.
Board members questioned whether restoring the engineering-manager slot would erode cash intended for future rate-driven capital improvements. One member said funding the position by drawing from projected transfers to fund balance would not affect immediate cash on hand; staff said transferring from net position is possible but emphasized that the city is also preparing for a revenue-bond discussion this summer.
A finance presenter explained a separate but related change in how enterprise funds are presented: depreciation — a non-cash expense — was included in the adopted FY27 enterprise budgets so that future rate studies capture the full cost of utility operations. "This is a non cash expense. So it does not impact the cash on hand, but it is critical to show the true cost of the utility operations," the presenter said.
Opponents warned the combined effect of adding positions, higher projected capital needs and adopted depreciation could lead to upward pressure on rates if the revenue path is not preserved. Supporters pointed to succession planning and operational continuity if the position remains vacant for extended periods.
The motion to restore the electric engineering manager passed on a roll call vote, six in favor and one opposed (the mayor). Staff was directed to provide updated salary and benefit line-item impacts and efforts to reconcile the decision with the city�s fund-balance strategy before the final adoption vote.
Outcome and next steps: the board approved the position and asked staff to return with a clear accounting of how the hire would affect near-term cash and long-term rate forecasts. The electric/utility team said it will continue work on a 5-year capital plan and an upcoming rate study to inform any future rate adjustments.
