Title
Administrative Adjustments to the Department of Utilities Capital Improvement Plan (CIP), Multi Year Operating Project (MYOP), and Operating Budgets
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FileID
File ID: 2026-01735
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt a Resolution authorizing the City Manager or designee to: 1) adjust the Fiscal Year 2026/27 Operating Budget in the Department of Utilities (DOU) Fiscal Operations Program (14001611, Fund 6005) in the amount of $1,468,963 with a budget transfer from the Water Fund Balance; 2) approve a transfer in the amount of $204,284 to reimburse the Drinking Water State Revolving Fund (Fund 6312) from the Water Fund Balance (Fund 6005); 3) approve a budget transfer of earned interest from Wastewater Revenue Bonds 2019 Fund Balance (Fund 6321) to Combined Sewer System Sump/Treatment Facilities Program (X14170500) in the amount of $509,000; 4) approve a budget transfer from Drainage Sump Replacement/ Rehabilitation Program (W14130600; Fund 6011 and 6021) to the Facility Electrical Rehabilitation Program (W14230200; Fund 6011 and 6021) for a total amount of $376,381; and 5) reset the City Manager’s or designee’s administrative authority for identified projects.
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Contact
Contact: Dalia Fadl, Director, (916) 808-3765, dfadl@cityofsacramento.org; Chuong (Ryan) Pham, Business Services Manager, (916) 808-8995, rpham@cityofsacramento.org; Kelly Sherfey, Supervising Financial Analyst, (916) 808-1466, ksherfey@cityofsacramaneto.org; Department of Utilities
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Resolution
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Description/Analysis
IssueDetail
Issue Detail: DOU has several administrative actions needed to re-allocate budget, balance fund balance, and correct an administrative error. The detail of each action is outlined below:
In FY2026/27 budget development, an ongoing revenue account utilized in an FY2025/26 budget journal was inadvertently carried over into FY2026/27 budget development and consequentially reduced the FY2026/27 Fiscal Operations Program operating budget in the amount of $1,468,963. Staff are seeking Council approval to authorize a budget transfer to Fiscal Operations Program (14001611; Fund 6005) in the amount of $1,468,963 from Water Fund Balance.
DOU’s Drinking Water State Revolving Fund (Fund 6312), utilized for DOU’s Accelerated Water Meter Project, has a negative fund balance due to negative interest incurred in prior fiscal years. Staff are seeking Council approval to authorize the appropriate transfer from the Water Fund Balance (Fund 6005) to the Drinking Water State Revolving Fund Balance (Fund 6312) in the amount of $204,284.
Due to accrued interest in our Wastewater Revenue Bonds 2019 Fund (Fund 6321), the fund balance is $509,000. Staff are seeking Council approval to authorize a budget transfer from the Wastewater Revenue Bonds 2019 Fund Balance to the Combined Sewer System Sump/Treatment Facilities Program (X14170500; Fund 6321) in the amount of $509,000.
DOU’s project priorities for Sump 34 have changed and a planned electrical rehabilitation project is no longer moving forward that was budgeted in DOU’s Drainage Sump Replacement/ Rehabilitation Program (W14130600; Funds 6011 and 6021). Staff are seeking Council approval to authorize a budget transfer to the Facility Electrical Rehabilitation Program (W14230200; Fund 6011 and Fund 6021) from the Drainage Sump Replacement/ Rehabilitation Program (W14130600; Fund 6011 and Fund 6021) for a total amount of $376,381 for a future electrical CIP related effort.
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PolicyConsiderations
Policy Considerations: The adjustments to the CIP and Operating budgets are consistent with the DOU 2026-2030 Strategic Plan goals and objectives to effectively manage infrastructure assets, purchase equipment, and deliver reliable services. Adjustments to operating and project budgets of more than $250,000 must be approved by the City Council.
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EconomicImpacts
Economic Impacts: Not applicable.
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EnvironmentalConsiderations
Environmental Considerations: The Community Development Department Environmental Services Manager has determined that the proposed activity is not a project pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15378(b). The fiscal management of DOU’s budgets is an ongoing administrative fiscal activity and is not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: Reallocating resources and making reimbursements are necessary administrative tasks to ensure timely projects, proper asset assessments, operational planning/functionality, and timely reimbursements.
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FinancialConsiderations
Financial Considerations: DOU is seeking authority to authorize a budget transfer from Water Fund Balance (Fund 6005) totaling $1,468,963 to correct the Fiscal Operations Program operating budget. The Water Fund Balance has sufficient budget in Fund Balance to support budget transfers to the Fiscal Operations Program’s (14001611; Fund 6005) operating budget in the amount of $1,468,963.
DOU is seeking authority to establish the appropriate transfer in the amount of $204,284 to reimburse the Drinking Water State Revolving Fund (Fund 6312) from the Water Fund Balance (Fund 6005). There is sufficient budget in the Water Fund Balance to facilitate this transfer.
DOU is seeking authority to authorize budget transfers from the Wastewater Revenue Bonds 2019 Fund Balance (Fund 6321) to the Combined Sewer System Sump/Treatment Facilities Program (X14170500; Fund 6321) in the amount of $509,000.
Staff are also seeking Council approval to authorize a budget transfer to the Facility Electrical Rehabilitation Program (W14230200; Fund 6011 and Fund 6021) for a total amount of $376,381 from the Drainage Sump Replacement/Rehabilitation Program (W14130600; Fund 6011 and 6021).
Lastly, staff recommends the City Council reset the administrative authority for the projects listed below:
|
Project Number |
Project Name |
|
G14240100 |
FY24 DOU OPERATING GRANT PROGRAM |
|
I14010100 |
FLOOD CONTROL PLANNING |
|
W14000200 |
BASE CIP CONTINGENCY-DRAINAGE |
|
W14130400 |
DRAINAGE CHANNEL IMPROVEMENT PROGRAM |
|
W14140200 |
HUDSON WAY DRAINAGE IMPROVEMENTS |
|
W14230200 |
FACILITY ELECTRICAL REHABILITATION PROGRAM |
|
Z14001500 |
DRINKING WATER QUALITY 3330 |
|
Z14006800 |
UNPLANNED CORRECTIVE MAINTENANCE |
There are no General Funds planned or allocated for this effort.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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