Mark V Dombroski

The Finance Committee meeting covered the presentation and discussion of the financial performance report for the period ended January 31, 2026, noting positive metrics such as debt service coverage of 1.96 times and an over-recovery on fuel purchase and energy charges. The committee also reviewed the annual comprehensive financial report for the fiscal year ending September 30, 2025, which resulted in an unmodified (clean) opinion from the auditors, including a prior period adjustment due to a new accounting policy regarding compensated absences. Discussions included the required annual review and update of the Finance Committee Charter and a detailed presentation on the property insurance renewal for policy year 2026, where the consultant recommended approving the proposed program despite ongoing negotiations expected to yield premium reductions.

The meeting commenced with introductions and the approval of minutes from the previous meeting. Old business included discussion regarding the BPUB's presence during the holidays, such as the Christmas parade and sponsorship through the holiday village, noting there was no meeting in December. New business covered the availability of volunteer opportunities for upcoming events like Charo Days and Sombrero Fest, as well as scheduling Scout Government Day and Girls Night Out. A detailed presentation was given on Fuel and Purchased Energy Supply, covering electric system resources like the Calpine Nidalgo and Silus Way power plants, fuel agreements, and power purchase agreements, noting a reduction in the Fuel and Purchase Energy Charge rate. Another presentation focused on Protection and Controls, explaining their role in maintaining system safety and reliability through the use of breakers and relays, and detailing how data retrieval aids in fault analysis. The session concluded with a public comments segment, where a resident raised concerns regarding sewer pipe blockages in the Los Einos neighborhood.

The 2026-2030 Strategic Business Plan for Brownsville Public Utilities Board outlines a five-year roadmap aimed at empowering greater Brownsville's future through exceptional utility services, community leadership, and operational excellence. The plan focuses on key areas such as optimizing affordability and power supply, ensuring optimal water supply, modernizing for resiliency, reliability, and technology, enhancing customer experience and community engagement, and strengthening risk management and interorganizational effectiveness. The overall vision is to deliver safe, reliable, and affordable utility services that foster community growth, operational excellence, financial strength, transparency, and strong leadership.

The board meeting began with confirmation of a quorum and an opportunity for public comments. Key agenda items included the approval of the October 31, 2025, board meeting minutes. The General Manager presented the production and distribution report for the period ended October 31, 2025, detailing distribution figures for various entities (BPUV, Valley Mud Number Two, Los Fresnos) and associated usage estimates, noting specific overages and underages. The report also covered production rates, chemical consumption costs ($137,798.59), and electrical consumption costs ($106,2661). Significant discussion occurred regarding two events that reduced water production: a scheduled shutdown for rewiring and a power outage during a microfiltration data server upgrade. Furthermore, analysis confirmed that iron, manganese, and arsenic levels were below maximum contaminant levels, and the board discussed the high cost associated with the current procedure to minimize manganese, debating whether to reduce equipment wear and tear versus maintaining full output. The Finance Manager presented the financial performance report as of October 31, 2025, showing an operating income of $367,765 and a resulting change in net position of $383,922. The Water Resources Administrator provided a drought update, stating that combined reservoir ownership stood at 26.8% and forecasting a warmer and drier outlook for the coming months, with reservoir storage expected to remain near record lows. The board then moved into a closed session to discuss an unsolicited offer from Military Highway Water Supply Corporation regarding the purchase of an easement on SRWA property.

The document appears to present financial performance reports for multiple BPUB Board of Directors Meetings (16 through 22) as of December 31, 2025, covering the Fiscal Year 2026 Year-to-Date activity. Key financial statements reviewed include the Statement of Revenues, Expenses, and Changes in Net Position, and Statements of Net Position. These reports detail operating revenues, expenses (including purchased power/fuel and personnel services), non-operating revenues/expenses, capital contributions, and the resultant change and total net position. Additionally, a summary of Revenues & Expenses (Flow of Funds) outlines balances available after requirements, including allocations for transfers out to the City of Brownsville (COB) and balances available for PUB improvements. A comparison of Residential Electric Bills for February 2026 based on 1,000 kWh usage from Investor Owned Utilities is also included.