Needles City utilities board approves FY 2026–27 budget with multi‑million dollar capital plan

The Needles City Board of Public Utilities on June 2 approved the Needles Public Utility Authority proposed budget for fiscal year 2026–27, after staff outlined revenue, expenditure and capital program projections for water, wastewater and electric operations.

Staff said the water fund projects roughly $3.34 million in revenue against $2.8 million in expenditures; the wastewater fund projects about $2.42 million in revenue and $1.69 million in expenditures; and the electric fund listed roughly $14 million in revenues and $13.28 million in expenditures. Combined operating cash and asset replacement reserves were highlighted as safeguards for ratepayers; staff also factored a conservative 5% cost‑of‑living adjustment in the forecast. "These reserves help protect ratepayers for any unforeseen costs," staff told the board.

The presentation included a five‑year capital improvement program totaling about $17.3 million for water projects, $9 million for wastewater projects and $48 million for electric projects — a combined $74.3 million — with major priorities including a proposed 1.5 million‑gallon water reservoir and distribution line extensions in the northern service area. Staff said some projects will require grant funding or developer contributions. Board members discussed purchasing small tapping equipment to allow in‑house taps and reduce subcontractor costs but agreed third parties would still be used for large, high‑pressure mains. A motion to approve the FY 2026–27 budget passed by unanimous roll call of the five members present.

Staff said implementation steps — including midyear budget adjustments if needed — and further project scoping will be reported in future meetings. The board also noted the August schedule for applying the consumer price index to electric rates as part of regular rate adjustments.