Richard English presented a proposed Operations & Maintenance (0 & M) and Debt

Staff Report & Agenda Item Details

Richard English presented a proposed Operations & Maintenance (0 & M) and Debt Service Budget for fiscal year 2026-2027. He thanked Staff for their efforts in getting everything together for preparing the budget. He reported the net revenue is in line with what is projected for this year. Under the current rate structure, we are projected to have an approximate deficit of $1,050,198; this will be funded through cash reserves. Although our current budget projection was budgeted with a $376,683 deficit, we expect to finish the year in a positive. R. English stated he is comfortable with the numbers we are seeing and does not see anything right now that would indicate we need to make a change in rates. Bob Evart reported under the proposed O & M Budget, the total revenue is projected to be $19,129,924. Growth is anticipated to increase during the fiscal year. Impact Fees projections are reduced based upon the new customer growth projections. Water and Sewer: With regard to SWATS, overall O & M expenses are budgeted at $4,518,270, with an expected income through the Wholesale Contract with JCSUD of $2,953,339, leaving a net expense to AMUD of $1,564,931. Projected raw water cost for all 7,000-acre feet is $570,000. BRA system-wide rate increased from $106.00 to $113.00 per acre foot. Option water contracts have increased slightly. This is water contracted for but not expected to be used, thus we pay less for reserving the water. - - - Debt: Debt Service is b