FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
title
FY 2025-26 BUDGET AMENDMENT
end
GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION:
Information Item.
body
BACKGROUND
In June 2025, the Board of Directors approved the Operating, Capital, Debt Service, and Self-Insurance Budgets for FY 2025-26. An accelerated execution rate for the Capital Improvement Program (CIP) and planned repairs and maintenance activities have driven the need to request a FY 2025-26 budget increase.
The table below shows the approved budget and estimated actuals for FY 2025-26 (in millions).
|
|
Approved Budget |
Estimated Actuals |
Variance |
Performance Percentage |
|
Capital |
$254 |
$318 |
$64 |
125% |
|
Operating |
$246 |
$260 |
$14 |
106% |
|
Debt Service |
$60 |
$60 |
$0 |
100% |
|
Other |
$21 |
$11 |
$(-10) |
52% |
|
Total |
$581 |
$649 |
$68 |
|
Due to receiving higher than budgeted revenues for FY 2025-26 a portion of the increase of the expenditure budget is offset, detailed in the table below (in millions).
|
|
Adopted Budget |
Estimated Actuals |
Variance |
|
Revenues |
$588 |
$617 |
$29 |
|
Expenditures |
$581 |
$649 |
$68 |
|
Net Revenues |
$7 |
$(32) |
$(39) |
The requested increase does not impact the long term cashflow due to the capital increase request in FY 2025-26 being predominantly driven by accelerated project spending, not project budget increases. These spending increases are offset by a reduction in spending for the relevant projects in future years.
RELEVANT STANDARDS
• Ensure the public’s money is wisely spent
• Produce appropriate financial reporting - annual financial report & audit letter and OPS & CIP budgets every two years, with annual update
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:
• Presentation