1 The June 18, 2026, Regular
Meeting of the Finance and
Risk Management
Committee
will Begin Shortly
[email protected]
2 Finance and Risk
Management Committee
Regular Meeting
June 18, 2026
3 Welcome and Call to Order
4 Roll Call
55 6
Land Acknowledgement
7 Items to be Withdrawn or
Reordered on the Agenda
8 Public Comment on non-Agenda Items
9 Consent
Calendar
1. Approve May 21, 2026, Meeting Minutes
10 Public Comment on Consent Calendar
11 Regular
Agenda
2. Treasurer’s Report for Nine-Month Period
Ending March 31, 2026
3. Public Hearing on AB 2561 (McKinnor) – Status
of Vacancies, Recruitment and Retention
4. Recommend Board Approval of Resolution,
Adopting FY 2026-27 Operating Budget, FY
2026-27 Capital Budget, and FY 2027-2031
Capital Investment Plan
12 Item No. 2
Treasurer’s Report
for Period Ending
March 31, 2026
Recommendation:
Receive and File Treasurer’s Report for Period
Ending March 31, 2026
Presenters:
Jannies Burlingame, Chief Financial Officer and Treasurer Dan Delaney, Chandler Asset Management
13 Results for the 9-month period ending
March 31, 2026:
• Operating Revenues = 1.5% above budget
• Operating Expenses = 5.0% below budget
Year-to-Date Totals for FY26:
• $981.2M in net operating revenues
• $772.7M in total expenses (including energy
costs of $729.7M)
• $208.5M change in YTD net position
Financial Statement Highlights
Summary of Actual Results vs. Amended Budget
YTD FY26 as of 3/31/26
(9 months) FY26 YTD Budget Budget Variance ($) Budget (%) Net Operating Revenues $ 981,237,475 $ 967,057,000 $ 14,180,475 101.5% Total Expenses $ 772,745,613 $ 813,825,000 $ (41,079,387) 95% Change in Net Position $ 208,491,862 $ 153,232,000 $ 55,259,863 Budget Comparison
$-
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
Net Operating Revenues Total Expenses Change in Net Position YTD FY26 Results v. Budget
YTD FY26 as of 3/31/26 (9 months) FY26 YTD Budget
14 FY Budget Net Position to Operating Income
-$10M
$M
$10M
$20M
$30M
$40M
$50M
$60M
$70M
8/31/2025 9/30/2025 10/31/2025 11/30/2025 12/31/2025 1/31/2026 2/28/2026 3/31/2026 Operating Income $33.8M $27.6M $62.4M $17.1M $4.2M $12.1M $5.8M $7.5M Budget Net Position $32.9M $21.3M $46.8M -$0.1M -$2.1M $8.2M -$2.7M $0.1M FY Budget Net Position to Operating Income
Operating Income Budget Net Position
15 Reserves
-
50 100
150
200
250
300
Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 4/30/2025 5/31/2025 6/30/2025 7/31/2025 8/31/2025 9/30/2025 10/31/2025 11/30/2025 12/31/2025 1/31/2026 2/28/2026 3/31/2026 DCOH 137 136 130 139 157 161 191 201 229 228 227 238
Maximum 270 270 270 270 270 270 270 270 270 270 270 270 Target 225 225 225 225 225 225 225 225 225 225 225 225
Minimum 180 180 180 180 180 180 180 180 180 180 180 180 Rolling 12-Months Days Cash on Hand (DCOH)
DCOH
Maximum
Target
Minimum
16 Reserves and Total Liquidity
Reserves are defined as unrestricted cash, cash equivalents, and investments unencumbered by legal agreements and not earmarked for specific purposes.
Unrestricted Cash,
$ 468,121,901
70%
Investments
(Current)
$ 85,172,937
13%
Investments
(Non-Current)
$111,046,243
17%
RESERVES
664,341,081 223,000,000
$M $200M $400M $600M $800M $1000M
3/31/2026
LIQUIDITY
Total Cash & Investments Credit Agreement
17 FY26 Year-To-Date Investment Income
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
8/1/2025 9/1/2025 10/1/2025 11/1/2025 12/1/2025 1/1/2026 2/1/2026 3/1/2026 8/31/2025 9/30/2025 10/31/2025 11/30/2025 12/31/2025 1/31/2026 2/28/2026 3/31/2026 Accumulated Investment Income 2,467,988 3,551,532 4,842,114 6,521,057 8,205,810 10,120,219 12,911,528 13,253,348 Monthly Investment Income 1,725,303 1,083,544 1,290,582 1,678,943 1,684,753 1,914,409 2,791,309 341,820
INVESTMENT INCOME
Accumulated Investment Income
Monthly Investment Income
18 Quarterly Clean Energy Prepayment Bond Program Savings Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026
2026C Rebate
2025D Rebate
2024F Rebate 451,563
2026C -
2025D 290,970 892,712 872,506
2024F 789,845 1,231,065 1,231,622 1,218,793 884,961
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Prepay Bond Program Savings
2024F 2025D 2026C 2024F Rebate 2025D Rebate 2026C Rebate 19 Participation by Jurisdiction
20 Contract Execution between $50,000 and $150,000
To ensure transparency and comply with Community Power’s Non-Energy Procurement Policy, the table below lists contracts or amendments with not-to-exceed values between $50,000 and $150,000 that were executed under the CEO’s authority for the month of May 2026.
Agreement 2026-27 - Keyes and Fox LLP
• Engagement letter for legal services (Not-to-Exceed $50,000) Agreement 2026-18 - The Urban Collective Project
• Marketing, Education and Outreach for the Equitable Building Decarbonization Direct Install Program, Southern Region (Not-to-Exceed $85,000)
Agreement 2026-11 - Aurora Energy Research LLC
• Subscription for Analytics & Advisory Services, and Software Solutions (Not-to-Exceed $130,000) 21 Community Banking Solicitation
What We're Trying to Accomplish
• Seeking one or more qualified financial institutions to serve as a Community Power public depository under
RFP 26-012, Community Banking & Qualified
Depository Services
• Advance our community banking objective by placing
Agency funds with a community-based institution or
institutions committed to serving local communities
• Scope is limited to deposit placement and related
banking only — not investment management or
advisory services
• Establish a five-year agreement with work anticipated to begin September 2026
Where Things Stand (as of June 18, 2026)
• RFP No. 26-012 issued May 19, 2026 through
Community Power's PlanetBids procurement portal
• Questions period closed June 1; Community Power's
responses to proposer questions issued June 9
• Proposals due June 19, 2026 at 5:00 pm PT —
currently in the open solicitation window
• Optional proposer interviews scheduled June 29 – July 3, 2026
• Next milestones: Notice of Intent to Award July 15,
Board approval August 27, and agreement execution
September 1, 2026
22 INVESTMENT REPORT
San Diego Community Power | As of March 31, 2026
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:
For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement. 22 23
ECONOMIC UPDATE
23 24
-400
-200
0 200
400
600
800
1,000
MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
March nonfarm payrolls rose by 178,000, a decisive reversal from February’s revised 133,000 decline that had been distorted by a Kaiser Permanente strike affecting over 30,000 healthcare workers and severe winter weather. Healthcare contributed 76,000 positions as striking nurses returned, while construction and leisure rebounded from weather-induced troughs. The unemployment rate edged lower to 4.3%, though partly from a labor force reduction rather than a hiring acceleration. Meanwhile, the underemployment rate edged up to
8.0% from 7.9% in February. Average hourly earnings rose 0.2% over the month and 3.5% year over year—the slowest annual pace since May 2021.
Source: US Department of Labor Source: US Department of Labor
EMPLOYMENT
24 25
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator
YOY % Change
PCE Core Deflator
YOY % Change
Fed Target
YOY (%) Change
Consumer Price Index (CPI) for March surged 0.9%, the highest monthly rate since June 2022, and was up
3.3% on an annual basis primarily due to spikes in energy and airfare prices. Notably, Core CPI was little changed with a monthly increase of 0.2% and an annual rise of 2.6% as costs for services and other goods remained subdued. Personal Consumption Expenditures (PCE) were little changed in February, with the headline PCE Price Index up 0.4% month-over-month and 2.8% year-over-year. The Fed’s preferred metric, Core PCE, which excludes food and energy, rose 0.4% during the month and 3.0% from February of 2025.
Source: US Department of Labor Source: US Department of Commerce
INFLATION
25 26
Source: Federal Reserve Source: Bloomberg
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0 Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Reserve left its benchmark interest rate unchanged in March, keeping the target range at 3.50% to 3.75% following three late-2025 rate cuts that were justified by signs of softening in the labor market. The Federal Open Market Committee minutes showed some participants supported two-sided language on future rate direction given the upside risks to inflation and downside risks to employment being elevated. However, policymakers have grown wary of potential inflationary pressures stemming from tariffs, the war in Iran, and the ensuing spike in commodity prices. The Federal Reserve now projects just one rate cut in 2026, even as inflation expectations rise. The Committee also reaffirmed its December decision to halt balance sheet runoff and to reinvest principal and interest payments from its securities holdings, signaling a continued emphasis on maintaining ample reserves and supporting orderly market functioning.
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Effective Federal Funds Rate
Recession
Yield (%)
FEDERAL RESERVE
26 27
Source: Bloomberg Source: Bloomberg
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
US Treasury Yield Curve
Mar-26
Dec-25
Mar-25
Yield (%)
At March month-end, the 2-year Treasury yield stood at 3.79%, down approximately 9 basis points from one year ago, while the 10-year finished at 4.32%, roughly 11 basis points higher year-over-year. The spread between the two narrowed to 52 basis points, wider by 20 basis points year-over-year. The prior 2-year to 10-year inversion from July 2022 through August 2024 was historically long. The average spread since 2005 is approximately 95 basis points, suggesting the current slope sits well below its long-run norm. The 3-month to 10-year spread stood near 64 basis points at March month-end.
BOND YIELDS
27 28
ACCOUNT PROFILE
28 29
OBJECTIVES
Investment Objectives
The investment objectives of the San Diego Community Power are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet all disbursement requirements; and third, to earn an acceptable rate of return after first considering safety of principal and liquidity.
Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.
Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds.
29 30
PORTFOLIO CHARACTERISTICS
San Diego Community Power ConsAgg | Account #11452 | As of March 31, 2026 3/31/2026
Portfolio
12/31/2025
Portfolio
Average Maturity (yrs) 0.55 0.46
Average Modified Duration 0.47 0.39
Average Purchase Yield 3.73% 3.47%
Average Market Yield 3.79% 3.41%
Average Quality** AA+ AA+
TotalMarket Value 662,161,715 676,186,199
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 30 31
STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg | Account #11452 | As of March 31, 2026 RulesName Limit Actual Complianc
e
Status
Notes
AGENCY MORTGAGE SECURITIES
Max % (MV) 100.0 2.0 Compliant
Max % Issuer (MV) 30.0 2.0 Compliant
Max Maturity (Years) 5.0 4.8 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant
ASSET-BACKED SECURITIES (ABS)
Max % (MV; ABS & MBS) 20.0 3.4 Compliant
Max % Issuer (MV) 5.0 0.3 Compliant
Max Maturity (Years) 5.0 4.1 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
BANKERS' ACCEPTANCES
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180.0 0.0 Compliant
Min Rating (A-1 by 1) 0.0 0.0 Compliant
CERTIFICATE OF DEPOSIT PLACEMENT SERVICE
Max % (MV) 50.0 26.8 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant
COLLATERALIZED BANK DEPOSITS
Max % (MV) 100.0 35.2 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
COLLATERALIZED TIME DEPOSITS (NON-NEGOTIABLE CD/TD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 by 1) 0.0 0.0 Compliant
COMMERCIAL PAPER
Max % (MV) 25.0 0.0 Compliant
31 32
STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg | Account #11452 | As of March 31, 2026 RulesName Limit Actual Complianc
e
Status
Notes
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270.0 0.0 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant
CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 4.4 Compliant
Max % Issuer (MV) 5.0 0.2 Compliant
Max Maturity (Years) 5.0 5.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant
FEDERAL AGENCIES
Max % (MV) 100.0 0.1 Compliant
Max % Issuer (MV) 30.0 0.1 Compliant
Max Callables (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5.0 1.3 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant
JOINT POWERS AUTHORITY (JPA) /
LOCAL GOVERNMENT INVESTMENT
POOL (LGIP)
Max % (MV) 100.0 1.5 Compliant
LOCAL AGENCY INVESTMENT FUND (LAIF)
Max % (MV) 100.0 11.3 Compliant
MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 0.3 Compliant
Max % Issuer (MV) 20.0 0.3 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant
MORTGAGE-BACKED SECURITIES (NON-AGENCY)
32 33
STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg | Account #11452 | As of March 31, 2026 RulesName Limit Actual Complianc
e
Status
Notes
Max % (MV; ABS & MBS) 20.0 3.4 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
MUNICIPAL SECURITIES
Max % (MV) 30.0 0.1 Compliant
Max % Issuer (MV) 5.0 0.1 Compliant
Max Maturity (Years) 5.0 3.5 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant
NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 or A- by 1) 0.0 0.0 Compliant
SRI PROHIBITED INVESTMENTS
Prohibited Investment - Fossil Fuels 0.0 0.0 Compliant
SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 0.1 Compliant
Max % Issuer (MV) 10.0 0.1 Compliant
Max Maturity (Years) 5.0 4.6 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 10.4 Compliant
Max Maturity (Years) 5.0 4.9 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant
33 34
PORTFOLIO CHARACTERISTICS
San Diego Community Power | Account #11293 | As of March 31, 2026 Benchmark* 3/31/2026
Portfolio
12/31/2025
Portfolio
Average Maturity (yrs) 2.65 2.93 3.03
Average Modified Duration 2.47 2.51 2.55
Average Purchase Yield 4.09% 4.16%
Average Market Yield 3.84% 4.02% 3.77%
Average Quality** AA+ AA+ AA
TotalMarket Value 124,884,349 104,590,213
*Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 34 35
SECTOR DISTRIBUTION
San Diego Community Power | Account #11293 | As of March 31, 2026 Sector as a Percentage of Market Value
Sector 03/31/2026 12/31/2025
US Treasury 55.09% 50.72%
Corporate 23.42% 26.66%
Agency CMBS 10.38% 10.19%
ABS 7.46% 9.38%
Money Mkt Fd 1.43% 0.38%
Supras 0.79% 0.95%
Agency 0.72% 0.87%
Muni Bonds 0.71% 0.86%
35 36
QUALITY DISTRIBUTION
Rating 03/31/2026 12/31/2025
AAA 8.11% 9.64%
AA 69.51% 65.07%
A 16.12% 20.29%
BBB 2.06% 1.83%
A-1+ 2.39% 0.95%
NA 1.81% 2.21%
Rating 03/31/2026 12/31/2025
Aaa 6.65% 7.74%
Aa 69.16% 65.28%
A 17.28% 20.42%
P-1 2.39% 0.95%
NA 4.52% 5.61%
Rating 03/31/2026 12/31/2025
AAA 15.32% 15.19%
AA 63.22% 62.72%
A 8.73% 9.31%
F1+ 2.39% 0.95%
NA 10.33% 11.82%
San Diego Community Power | Account #11293 | As of March 31, 2026 S&P Rating Moody’sRating Fitch Rating
36 37
0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 3.5% 1.4% 8.0% 22.9% 26.5% 22.8% 14.8% 0.0% 0.0% ICE BofA 1-5 YearUnsubordinated US Treasury
& Agency Index 0.0% 0.0% 2.5% 35.8% 29.1% 20.5% 12.1% 0.0% 0.0%
DURATION DISTRIBUTION
San Diego Community Power | Account #11293 | As of March 31, 2026 Portfolio Compared to the Benchmark
37 38
INVESTMENT PERFORMANCE
San Diego Community Power | Account #11293 | As of March 31, 2026 Total Rate of Return: Inception | 10/01/2024
TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception San Diego Community Power 0.25% 4.25% 3.79%
Benchmark 0.20% 3.87% 3.40%
*Periods over 1 year are annualized.
Total rate of return: A measure of a portfolio’s performance over time. It isthe internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index 38 39
PORTFOLIO CHARACTERISTICS
San Diego Community Power Reporting | Account #11451 | As of March 31, 2026 3/31/2026
Portfolio
12/31/2025
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 3.65% 3.34%
Average Market Yield 3.73% 3.34%
Average Quality** AAA AAA
TotalMarket Value 537,277,366 571,595,985
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 39 40
SECTOR DISTRIBUTION
San Diego Community Power Reporting | Account #11451 | As of March 31, 2026 Sector as a Percentage of Market Value
Sector 03/31/2026 12/31/2025
Collateralized Bank Deposit 43.36% 45.91%
Placement Service Deposit 32.97% 30.66%
LAIF 13.97% 0.02%
Cash 7.84% 23.42%
LGIP 1.86% --
40 41
Public Comment on
Item No. 2
42 Item No. 2
COMMITTEE
MEMBERS
COMMENTS AND
QUESTIONS
Treasurer’s Report for
Period Ending
March 31, 2026
Recommendation:
Receive and File Treasurer’s Report for Period
Ending March 31, 2026
43 Item No. 3
Public Hearing on AB
2561 (McKinnor) –
Status of Vacancies,
Recruitment and
Retention
Recommendation:
Recommend the Board hold a public
hearing, receive comments, and accept a
report on the status of Community Power
employee vacancy rates and recruitment
and retention efforts.
Presenter:
Tim Manglicmot, Senior Director of Finance and Risk
44 Background
Assembly Bill (AB) 2561 (McKinnor) amended the Myers-Milias-Brown Act (MMBA) to add Government Code Section 3502.3, which created a new obligation for public agencies to present the status of vacancies and recruitment and retention efforts.
The public hearing must be held at least once per fiscal year prior to adopting an annual budget. During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. The law also allows recognized employee organizations, which Community Power does not have, an opportunity to present at the public hearing. The new law took effect on January 1, 2025, and applies to all public agencies.
45 Requirements
• "Status" of vacancies - 28 vacancies of which 23 were new positions • Recruitment and retention efforts
• Present findings and make any recommendations, if needed, to recruitment and retention efforts
46 Current Openings Positions
• Marketing and Communications Associate: In-Person interviews.
Using outside Executive recruiter to source candidates. No foreseen obstacles to hiring.
• Data Engineer: High number of applications received. No foreseen obstacles to hiring.
• Program Associate: Final interview stages.
47 Findings
Employee turnover at Community Power this past fiscal year stood at 3.16%, and employee retention stood at 96.8%, as shown in the table below. Of the twenty-eight vacancies, twenty-three were new positions; four positions were backfilled, and one position being backfilled was split into two part-time hires. Community Power’s retention efforts include offering competitive wages, 10% of base pay employer contribution to employee Money Purchase Plan retirement account, generous vacation, and sick time, 11 paid holidays including a winter break, and a professional development stipend. Because Community Power has been highly successful in filling vacant positions this past fiscal year and retaining its employees, no changes are being recommended to its recruitment process and retention efforts.
48 Status of Vacancies
49 Retention Efforts
• Competitive Pay
• 10% of base pay employer contribution to employee Money Purchase Plan retirement account
• Competitive total compensation package for talent retention • 11 paid holidays including winter break (Dec. 23 – Jan. 1) • Professional Development Stipend
50 Public Comment on
Item No. 3
51 Item No. 3
Committee Members
Comments or
Questions
Public Hearing on AB 2561
(McKinnor) – Status of
Vacancies, Recruitment
and Retention
Recommendation:
Recommend the Board hold a public
hearing, receive comments, and accept a
report on the status of Community Power
employee vacancy rates and recruitment
and retention efforts.
52 Item No. 4
Recommend Board
Approval of Resolution,
Adopting FY 2026-27
Operating Budget, FY
2026-27 Capital Budget,
and FY 2027-2031
Capital Investment Plan
Presenter:
Tim Manglicmot, Senior Director of Finance and Risk
Recommendation:
Recommend Board Approval of Resolution,
Adopting FY 2026-27 Operating Budget, FY
2026-27 Capital Budget, and FY 2027-2031
Capital Investment Plan.
53 Budget Cycle Timeline
February
March
April
May
June
Develop Operating Revenue
Estimate
Develop Operating Expense
Estimate
Internal budget planning and
priorities
Staff develop operating
budgets
Staff continue to develop
operating budgets
Baseline budget is developed
Finance and Risk
Management Committee
Review
Community Power Board
Review
Community Advisory Committee
Review
Finance and Risk Management
Committee Review
Community Power Board
Approval
54 Budget Highlights
Fiscal Responsibility.Maintaining strong reserves, proactive risk management, and innovative financial strategies to navigate market uncertainty while
preserving long-term affordability and resilience.
Organizational Sustainability. Strengthening our internal capacity to support long-term strategy and service delivery.
Stable, Competitive Rates. Maintaining affordability through disciplined operations, long-term procurement and financial foresight.
Local Investment. Continuing to invest in local projects that increase grid reliability and help keep power affordable for customers.
Capital Investment Plan. Advancing our Capital Investment Plan to guide infrastructure development and ensure transparency.
55 FY 2026-2027 Operating Budget
Item
May 28, 2026
Board Meeting,
$M
June 18, 2026
FRMC Meeting,
$M
FY27
Budget Change,
$M
Gross Revenue 932.8 932.8 -
Less Uncollectible Accounts (14.0) (14.0) -
Net Revenue 918.8 918.8 -
Cost of Energy 872.3 872.3 -
Non-Energy Costs 56.5 55.7 (0.8)
Subtotal Operating Expense 928.9 928.1 -
Interest Income (23.1) (23.1) -
Debt Service 1.9 1.9 -
Capital Investment Plan 8.0 8.0 -
Total Expense 915.7 914.9 (0.8)
Net Position 3.1 3.9 (0.8)
Reductions
FY27
Budget Change,
$M
Personnel (0.72)
Prof. Services (0.08)
Strat. Comm. (0.02)
General & Admin. (0.01)
Total (0.82)
Staff further reviewed
Community Power’s
non-energy budget and are proposing
further reductions of
$0.8 million.
*Certain figures presented may vary slightly due solely to rounding 56 FY 2026-2027 Operating Budget
Item
FY 2025-2026
Amended Budget,
$M
FY 2026-2027
Proposed Budget,
$M
Gross Revenue 1,194.8 932.8
Less Uncollectible Accounts (19.4) (14.0)
Net Revenue 1,175.4 918.8
Cost of Energy 969.9 872.3
Non-Energy Costs 50.0 55.7
Subtotal Operating Expense 1,019.9 928.1
Interest Income (18.3) (23.1)
Debt Service 1.5 1.9
Capital Investment Plan 21.9 8.0
Total Expense 1,025.0 914.9
Net Position 150.4 3.9
Year-Over-Year
Rate Reduction Anticipated
Jan to Jun 2027
($97.6M)
Cost of Energy Decrease
+$5.7M
Non-Energy Increase
+$3.9M
Net Position
($13.9M)
Lower CIP
Contribution
57 $0.0M
$100.0M
$200.0M
$300.0M
$400.0M
$500.0M
$600.0M
$700.0M
$800.0M
01/01/26
02/01/26
03/01/26
04/01/26
05/01/26
06/01/26
07/01/26
08/01/26
09/01/26
10/01/26
11/01/26
12/01/26
01/01/27
02/01/27
03/01/27
04/01/27
05/01/27
06/01/27
07/01/27
08/01/27
09/01/27
10/01/27
11/01/27
12/01/27
Reserve Projections
280-DCOH
Projected FYE 2026-27
Reserve Balance
FYE 2026-2027
30 to 50
DCOH
FY26 Deferral to RSR
58 CIP Highlights
SD Regional Energy Network.In partnership with the County of San Diego, SDREN generates nearly $125 million in energy efficiency resources for the region through 2027 and marks the final major population area in California to establish a Regional Energy Network.
Solar Battery Savings. $3.5M investment to fund upfront and performance-based incentives for home battery systems that boost resilience and reduce grid demand during peak hours.
Pilot Programs. $2.5 million to support Customer Pilot Programs which represent small-scale, short-duration projects that can provide data on program design,
technology acceptance and other information helpful for broader program delivery.
Programs and Incentives. $1.5 million will support the Distributed Energy Resources Management Systems Software Platform to support the organization’s Flexible Load Strategy.
59 Capital Budget and CIP
Carryforward FY27 FY28 FY29 FY30 FY31 Total
External Funding
Regional Energy Network - 63.1 51.4 42.0 43.7 45.5 245.7 DAC-GT 0.3 0.3 - - - - 0.6
Equitable Building Decarbonization 1.4 - - - - - 1.4
Planning and Studies 0.7 - 0.7
Total External Funding 2.4 63.4 51.4 42.0 43.7 45.5 248.4 Internal Funding
Solar Battery Savings 10.8 3.5 10.4 8.3 8.5 7.6 49.1
Pilot Programs 2.0 2.5 - - - 4.5
Grants 1.3 - - - - - 1.3
Flexible Load 0.5 1.5 - - - - 2.0
IT Projects 3.2 0.2 - - - - 3.4
Program Evaluation 0.3 0.3 - - - - 0.6
Application Assistance 0.3 - 0.3 - - 0.3 0.9
Total Internal Funding 18.4 8.0 10.7 8.3 8.5 7.9 61.8
Total CIP Expenses 20.8 71.40 62.10 50.30 52.20 53.40 310.2 Appropriated in
prior fiscal years
Proposed Capital
Budget
Proposed Capital
Investment Plan
60 Proposed Actions
Operating Budget
Proposed Board Action
Capital Budget Capital Investment Plan
(FY27-FY31)
Operating Budget
Receive and file the FY2026-27
Operating Budget, which incudes net
revenues of $918.8M and total
expenses of $914.9M for a total
increase in net position of $3.9M
Capital Budget
Approve, as part of the operating budget,
an $8.0M transfer from operations to
support the FY2026-27 capital budget.
This supplements $63.4 M in authorized
external funding for a capital budget of
$71.4M
Capital Investment Plan
Approve and file the FY2027-2031
Capital Investment Plan which projects
a total investment of $310.7M over
the 5-year outlook period.
Net Revenue: $918.8M
Total Expense: 914.9M
Net Position $3.9M
Operating Transfer $8.0M
Authorized Budget 63.4M
FY27 Capital Budget $71.4M
External Funding $249.1M
Internal Funding 61.6M
CIP $310.7M
61 Public Comment on
Item No. 4
62 Item No. 4
Committee Members
Comments or
Questions
Recommend Board
Approval of Resolution,
Adopting FY 2026-27
Operating Budget, FY
2026-27 Capital Budget,
and FY 2027-2031
Capital Investment Plan
Recommendation:
Recommend Board Approval of Resolution,
Adopting FY 2026-27 Operating Budget, FY
2026-27 Capital Budget, and FY 2027-2031
Capital Investment Plan.
63 Committee Member Announcements
64 Adjournment
65 Next Regular Finance and
Risk Management
Committee Meeting
August 20, 2026
[email protected]
66 We are experiencing technical
difficulties.
Please be assured that we are
working to resolve the issue and
meeting will resume shortly.
Thank you.