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Committee recommends board approve FY2026–27 operating budget and $71M first-year capital appropriation; staff trims $820,000 in non-energy costs
Summary
San Diego Community Power staff proposed reductions of $820,000 in non-energy costs, a resulting projected net position of $3.9 million, a first-year capital appropriation of about $71 million, and a five-year CIP totaling $310 million; the committee voted to recommend board approval and staff signaled possible rate relief for January 2027 is still uncertain.
Timothy Manglemont, senior director of finance, presented the recommended FY2026–27 operating budget, the first-year capital appropriation and the five-year capital investment plan to the Finance and Risk Management Committee on June 18.
Manglemont said staff cut $820,000 from non-energy portions of the budget—mostly by reducing proposed positions and related equipment needs—and preserved revenue and energy-cost assumptions. "After that $820,000 non-energy cost reduction, we still have a small modest resulting net position of $3.9 million," he said, adding that the agency is maintaining its budget-policy reserves while noting the budget is thin given recent PCI-related cost pressures.
On rates and reserves: staff told directors the budget still assumes a potential double-digit rate reduction for customers in January 2027 but called that projection uncertain. The presentation anticipates reserves rising toward approximately 280 days cash on hand by fiscal year-end and said staff will return in October with audit-informed recommendations on moving a portion of reserves into a rate stabilization reserve intended for customer relief or program use.
Capital Investment Plan: Manglemont described the first-year capital appropriation (about $71 million) and a five-year CIP totaling $310 million. Flagship proposed programs in the CIP include the San Diego Regional Energy Network and ongoing customer programs such as the solar rebate/savings effort. He emphasized that the five-year figure is a planning document and that only the first-year appropriation is an appropriation action.
Motion and vote: A committee member moved and another seconded the recommendation to the board to adopt the FY2026–27 operating budget, the first-year capital appropriation and the five-year CIP; the motion carried on roll call (transcript records 'motion carries' but detailed tallies are not specified).
Next steps: The committee’s recommendation will be forwarded to the full board for formal adoption and staff will return in October with recommended reserve actions informed by the financial audit and summer energy-costs.
