Adopt Resolution No. 2026-143 Approving the Fiscal Year 2026-2027 Operating Budget for the Electric Utility Public Benefit Fund (Fund 675), effective retroactively to October 1, 2026.
The City's Fiscal Year 2026-2027 began on July 1, 2026. The City Council adopted Resolution 2026-89, authorizing continued expenditures through September 30, 2026, pending adoption of the Fiscal Year 2026-27 budget.
On September 22, 2026, staff presented the Operating Budget to City Council for approval. Staff needed additional time to review the fund's projected resources and proposed expenditures applicable to the Public Benefit Fund program. City Council approved Joint Resolutions 2026-131, 2026-08UA, and 2026-02 SA, adopting the Operating Budget, excluding the Public Benefit Fund.
Fund 675 accounts for revenues and expenditures associated with the Electric Utility's public benefit programs. Fund resources are to be used for eligible public benefit purposes and administered in accordance with applicable requirements.
Staff reviewed the proposed budget and determined that the amounts and uses reflected in the attached Fund 675 budget schedule are appropriate for Council consideration. No changes were made to the revenue or expenditure accounts from what was originally presented for adoption. Adoption will establish expenditure authority for the remainder of the fiscal year, allow staff to administer the fund's programs, and ensure that Fund 675 transactions recorded beginning October 1 are applied against Council-approved appropriations.
Staff recommends that the budget take effect retroactively on October 1, 2026. This date marks the beginning of the second quarter and follows the first-quarter continuing budget period. The retroactive effective date avoids a gap in budget authority after September 30 and supports consistent accounting for Fund 675 activity beginning October 1.
Approval of the operating budget does not change the requirements governing Fund 675 expenditures. Purchases and contracts will remain subject to the City's purchasing policies, available appropriations, applicable restrictions on the use of public benefit funds, and any separate Council approval requirements.
Adoption of the annual budget establishes the City's legal authority to appropriate and expend funds for operations and services during the fiscal year.
Approval will establish Fiscal Year 2026-2027 estimated revenues and expenditure appropriations for Fund 675 in the amounts shown in the attached budget schedule. Fund 675 is supported by resources dedicated to Electric Utility public benefit activities. No General Fund impact is anticipated. Expenditures may not exceed Council-approved appropriations without subsequent authorization.