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Sterling staff outline FY2027 Electric Fund budget; sales-to-customers make up 87% of revenue
Summary
City Manager Hutcheson reviewed the FY2027 Electric Fund proposed budget, noting sales-to-customers account for 87% of revenue, a 13.3% rate increase in April 2026, planned capital purchases (bucket truck, meter upgrades), and inclusion of debt service for the upcoming generator GO bond.
City Manager Ian Hutcheson presented the proposed Fiscal Year 2027 Electric Fund budget, highlighting that sales to customers constitute approximately 87% of fund revenue and that the City enacted a 13.3% rate increase in April 2026 to meet debt service requirements and strengthen fund reserves. Hutcheson described other revenue sources (reconnect charges, connection fees, pole attachment fees, GRR and miscellaneous revenue) and reviewed proposed expense increases, including a 4% salary adjustment, 15% increase in health insurance costs, funding for SEL relays at the Power Plant, and capital projects such as an electric meter upgrade and the purchase of a large distribution bucket truck.
Hutcheson noted the Administration/Commercial General department budget will include debt service for the forthcoming Series 2026 GO Bond to finance the new three-MW generator and an increase in property insurance for plant generators. He explained the Electric Fund cash balance purpose and referenced Government Finance Officers Association guidance on reserve policy. Commissioners asked questions; no action was taken at this meeting.
