WATER AND
POWER
Burbank Water &
Power’s Proposed
FY 2025-26 & 2026-
27 Budgets
City Council
May 6, 2025
Mandip Kaur Samra
General Manager – BWP
BWP Performance
19%
45% 99.997%
99.999%
99.999%
2 BWP Challenges
3 Workforce
Aging assets
Increasing
regulatory
environment
Supply chain/Inflation
High energy/Gas/Water price
spikes
Industry partner
dynamics
Federal policy
changes (tariffs)
Customer
expectations/development
demands
Technology
Prior rate under
collection
Emergencies/Extreme
weather events
Risks
• Extreme weather events
• Recent windstorms could’ve
impacted us
• Major catastrophic events
• Maintain recommended reserves
• Repair and maintain aging
infrastructure
• Regulatory mandates
• Possible increases due to tariffs
being in place
4 Proposed Budget Authority
5 ($ in 000's) FY 2024 -25
Adopted
FY 2025 -26
Proposed
25-26 vs 24 -25
(Decr) / Incr in
Budget
FY 2026 -27
Proposed
26-27 vs 25 -26
(Decr) / Incr in
Budget
Electric Fund (496) $331,795 $413,757 $81,962 $340,131 ($73,626) Water Fund (497) 51,494 71,229 19,735 93,803 22,574
MPP Operating Fund (483) 30,565 30,063 (503) 32,113 2,050 Tieton Hydro Operating
(133) 2,008 2,183 175 2,290 107
Street Lighting Fund (129) 5,920 5,168 (751) 3,995 (1,173) Communications Fund
(535) 4,429 6,597 2,168 5,985 (612)
Total Authority $426,211 $528,997 $102,786 $478,317 ($50,680) 6 Electric Proposed Budget Authority
7 $ in
millions
FY 24/25 Adopted FY 25/26 Proposed FY 26/27 Proposed
Capital
Projects
$45,516 13.7% $125,752 30.5% $46,388 13.6%
Capital
Outlay
$4,855 1.5% $7,993 1.9% $7,098 2.1%
O&M $281,424 84.8% $280,012 67.6% $286,645 84.3%
Total $331,795 100.0% $413,757 100.0% $340,131 100.0%
• Higher costs to procure renewables and meet
regulatory mandates (48% and 51% renewables)
• Increased transmission, operating, and capital
costs
• IPP repowered with natural gas
• Investments in a sustainable future
• Utilizing energy cost adjustment charge (ECAC)
and reserves to stabilize rates
• 3% system losses
• 9.9% average rateadjustments effective January
2026 and2027
Electric Highlights and
Assumptions for Years 1-2
8 Electric Cash Reserves
$ in 000’s
FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Reserve
Shortfall $ -- $17,542 $595 $ -- $ --
9 Electric Capital Improvements
10 Project (In $000’s) FY 25-26
Proposed
FY 26-27
Proposed
Airport Substation $14,373 $0
4kV to 12kV Conversions 8,000 8,000
Replacement of Advanced Metering Infrastructure 5,500 5,500 Citywide and EcoCampus Solar and Storage 5,000 2,000
Spare Transformers/Mobile Transformer Purchase 4,600 5,000 Olive A3 Transformer Replacement 3,500 0
Replace Deteriorated Overhead Elect. Dist. Lines 3,000 3,000 Other Remaining Projects 25,493 15,838
Total Electric Fund CIP Projects $69,466 $39,338
Electric Aid-in-Construction
Project (In $000's) FY 25-26
Proposed
FY 26-27
Proposed
Airport Substation – Sub-transmission and
Distribution $49,093 $0
Build Service to Large Project Over 1 MVA 5,000 5,000
Build New Customer Transformer Stations, 750 kVA
& Under 1,600 1,800
BWP Campus Resiliency Upgrades 300 0
Provide Fiber Optic Services to Customers City Wide 250 250 Bus Differential Relay Upgrade (69kV) 43 0
Total Electric Fund AIC Projects $56,286 $7,050
Justification for Capital Projects
• Cannot delay projects due to unfunded
mandates, regulatory compliance, & reliability
• SB35 mandates lead to additional
electrical infrastructure work across city
(new substations, energizing units, etc.)
• 4kV to 12kV conversion reduces line losses
and increases amount of capacity available
• Supplies must be purchased right away due
to 3 – 4 year wait
• Budget authority needed upfront—cost only
increases over time 12
13 Water Proposed Budget Authority
14 $ in
millions
FY 24/25
Adopted
FY 25/26
Proposed
FY 26/27
Proposed
Capital
Projects
$7,850 15.3% $26,284 36.9% $45,326 48.3%
Capital
Outlay
$895 1.7% $353 0.5% $1,327 1.4%
O&M $42,749 83.0% $44,592 62.6% $47,150 50.3%
Total $51,494 100.0% $71,229 100.0% $93,803 100.0%
Water Highlights and Assumptions
for Years 1-2
• MWD annual overall rate increases of 8.5% on
Jan. 1, 2025, and 2026 and a proposed 11%
increase on Jan. 1, 2027, and 2028
• Possible bond issuance in year 2
• Reduction in demand for potable sales due
to successful conservation efforts
• Increased capital costs to modernize
infrastructure and adapt to climate change
• 6% system losses
• Matching funds for potential grants
• 14% average rate adjustments in both years
15 Water Cash Reserves
$ in 000’s
FY 25-26 FY 26-27 FY 27-28 FY 28-29 FY 29-30
Reserve
Shortfall $4,766 $ -- $290 $6,056 $ --
16 Potable Water Capital Improvements
17 Project (In $000's) FY 25-26
Proposed
FY 26-27
Proposed
Reservoir #2 Replacement $0 $23,805
Design-Build Pipeline Project 10,400 0
Upper Zones Disinfection Residual Improvement/Upper
Zones CL2 Booster 5,038 0
Potable Small Water Mains 3,025 2,750
FEMA Seismic Pipeline Retrofit Grant 1,335 14,684
System Expansion AIC 884 909
Potable Large Water Mains 650 600
Other Remaining Projects 3,642 2,173
Total Potable Water Fund CIP Projects $24,974 $44,921
Recycled Water
Capital Improvements
Project (In $000's) FY 25-26
Proposed
FY 26-27
Proposed
Potable Reuse - Study/Program $1,100 $0
Interior Tank Coating 0 144
Pump Station 1 Rehabilitation 50 100 Meters 41 42
Fiber Optic Communications 32 30
Water Supervisory Control and Data Acquisition
(SCADA) Equipment Replacement 30 30
Other 57 58
Total Recycle Water Fund CIP Projects $1,310 $405
Magnolia Power Project (MPP)
Proposed Budget
19 ($ in 000's)
Description
FY 24/25
Adopted
Budget
FY 25/26
Proposed
Budget
FY 26/27
Proposed
Budget
Est. Net Generation
in MWh 1,320,480 1,524,593 1,084,820
Operating &
Maintenance Expenses $29,447 $29,888 $31,963
Capital Expenditures 1,118 175 150
Operating Agent
Budget
(Fund 483) $30,565 $30,063 $32,113
Tieton Proposed Budget
20 ($ in 000's)
Description
FY 24/25
Adopted
Budget
FY 25/26
Proposed
Budget
FY 26/27
Proposed
Budget
Est. Net Generation
in MWh 47,704 45,471 45,471
Operating &
Maintenance Expenses $1,861 $2,035 $2,135
Transmission
Expenses 95 95 99
Capital Expenditures 52 53 56
Operating Agent
Budget (Fund 133) $2,008 $2,183 $2,290
Street Lighting Proposed Budget
21 Description ($ in 000's)
FY 24-25
Adopted
Budget
FY 25-26
Proposed
Budget
FY 26-27
Proposed
Budget
Transfers $3,182 $3,263 $3,663
Operating Expenses
Utilities 659 728 785
Street Lighting Maintenance 854 829 820
Other Operating Expenses 263 300 308
Total Operating Expenses 1,776 1,857 1,912
Capital Expenditures 4,144 3,311 2,083
Total Budget $5,920 $5,168 $3,995
Comm Fund Proposed Budget
22 Description ($ in 000’s)
FY 24-25
Adopted
Budget
FY 25-26
Proposed
Budget
FY 26-27
Proposed
Budget
Revenues
Charges for Services $3,113 $3,268 $3,947
Total Operating
Revenues $3,113 $3,268 $3,947
Operating Expenses
Operations & Maintenance 3,145 3,539 3,268
Depreciation 877 727 679
Total Operating
Expenses
4,022 4,266 3,947
Pension Repayment 42 21 0
Capital Expenditures 365 2,310 2,038
Total Budget $4,429 $6,597 $5,985
Staffing Summary
Current
24/25
Proposed
25/26
Proposed
26/27
Electric Fund 300 319 327
Water Fund 54 52 52
Communications Fund 6 6 6
BWP Headcount by FY 360 377 385
BWP HEADCOUNT
23 FY 2025 -26 Position Requests
• Electric Distribution – 4 new FTEs paid for primarily by Aid in Construction
• 2-Electricians
• 1-Electrical Engineer
• 1-Principal Eng Tech
• Operations Technology - 4 new FTEs
• 2 - Security Guards
• 1 - Sr Utility Business System Analyst
• 1 - Utility Business System Analyst
• Customer Service – 2 new FTE
• 2 - Customer Service Rep III
24 FY 2025 -26 Position Requests
• Water – 1 new FTE
• Director of Water Engineering
• Power Systems – 2 new FTEs
• Power Resources Supervisor
• Power System Operations Trainee
• GM Admin Services – 2 new FTEs
• Chief of Staff
• Intergovernmental Affairs Mgr
• Safety – 1 new FTE
• Senior Admin Analyst (Z)
• Finance – 1 new FTE
• Financial Analyst
25 Burbank Water & Power Operations
26 Recommendation
Staff recommends City Council approve
the utility’s proposed FY 2025-26 budget
as presented on the May 6, 2025, City
Council meeting for the following
funds: Electric (496), Water (497), MPP
(483), Tieton Hydro (133), Street Lighting
(129), and Communications (535).
27 Questions?
QUESTIONS?
Mandip Kaur Samra
General Manager
[email protected]
(818) 238-3550 office
28