FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
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FY 2025-26 BUDGET AMENDMENT
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
Approve a budget increase of $68,000,000 for FY 2025-26, for a total budget as follows:
FY 2025-26
Net Operating $260,365,399
Self-Insurance $ 6,745,565
Net Capital Improvement Program $317,959,620
Debt/COP Service $ 60,431,104
Intra-District Joint Equity Purchase/Sale (1) $ 3,500,000
Total $649,001,688
(1) Cash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA15)
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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.
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
PROBLEM
The budget authority for FY2025-26 is not adequate to cover the estimated expenses for the fiscal year.
PROPOSED SOLUTION
Approve the proposed budget increase for FY 2025-26.
TIMING CONCERNS
The budget increase needs to be approved before expenditures can exceed the previously approved amount.
RAMIFICATIONS OF NOT TAKING ACTION
OC San will not have a budget approved at sufficient levels to accommodate the expenses incurred in FY 2025-26.
PRIOR COMMITTEE/BOARD ACTIONS
J...
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