CU board passes $859M budget to council for approval

The Board of Public Utilities that governs City Utilities of Springfield has passed a nearly $859 million budget to City Council for approval.

The board voted at its meeting yesterday to unanimously approve the budget, which proposes $858.9 million in disbursements during the utility company's upcoming fiscal year, according to a news release. The new fiscal year starts Oct. 1.

"The FY 2026 budget supports City Utilities’ ongoing commitment to replacing aging infrastructure, ensuring the safety and reliability of essential services while maintaining affordability for customers," CU officials said in the release. "Budgeted expenditures include fuel costs, capital improvements and operational expenses across all utility systems."

The proposed budget, which is available to view on CU's website, projects total expenditures for fiscal 2026 at $807 million, which is down $13 million from the current fiscal 2025 budget. The nearly $859 million disbursement authority figure – with $55 million in contingency funds for potential volatility in business operations and fuel pricing – is down from $920.1 million in the current budget. 

Council is scheduled to hold a first reading for the CU budget on Sept. 8, with a vote to follow on Sept. 22.

CU additionally will seek council approval for an electric rate increase to be phased in over two years, according to the release. The utility cited over $280 million in power supply projects announced last year as the need for the rate hike, which would add a 3% average increase in April 2027 and an additional 3.6% average increase in April 2028. 

CU in March completed a $283.5 million board-approved lease financing to help fund the infrastructure expenditures.