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Council receives Department of Utilities financial update; staff highlights reserves, coal inventory and near-term costs
Summary
Finance Director Jennifer Knapp told council the Department of Utilities is 'in good financial shape' but faces higher gas costs (Unit 8 out) and planned capital projects that will draw reserves; staff described coal-pile density testing and projected 4–5 years to rebuild an eight-month reserve.
Jennifer Knapp, the city's finance director, presented the Department of Utilities quarterly report comparing FY25 to FY24 and said, "Overall, the Department of Utilities is in good financial shape," while noting rising costs and a planned horizontal-well capital project that will draw on water reserves.
Knapp explained the department expects higher FY26 costs because Unit 8 remains out and gas consumption at the electric plant will increase; she said the city aims to restore about eight months of reserves gradually and estimated it could take roughly four to five years to rebuild that level without sudden rate hikes. Knapp also referenced a coal-pile density study used to estimate coal tonnage.
Councilmembers asked for technical details about the coal-density methodology. A staff member described how compression/density checks are applied to survey values and compared against measured burned tonnage on plant scales, saying staff use the checks as independent measures. Council then voted on a motion to receive the report: Councilman Jensen moved to receive the Department of Utilities financial report and Councilwoman Gannon seconded. The transcript does not list a vote tally.
Next steps: staff will finalize audited statements after March and the council will track reserve rebuilding and capital funding needs as the department proceeds with planned projects.
