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Home My WebLink About2026-04-21 Finance Committee Action MinutesFINANCE COMMITTEE ACTION MINUTES Page 1 of 3 Regular Meeting April 21, 2026 The Finance Committee of the City of Palo Alto met on this date in the Community Meeting Room and by virtual teleconference at 4:00 PM. Present In-Person: Lauing (Chair), Burt, Lu Absent: Call to Order Public Comment Agenda Items 1. Recommendation to the City Council to Adopt a Resolution Approving the Fiscal Year 2027 Gas Utility Financial Forecast, Reserve Transfer, General Fund Transfer, and Amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), and G-3 (Large Commercial Gas Service) ; CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(5) MOTION: Councilmember Burt moved, seconded by Councilmember Lu, to recommend the City Council adopt a resolution (Attachment A): 1. Approving the Fiscal Year 2027 Gas Utility Financial Forecast shown in this staff report and attachments, which includes amending the Gas Utility Reserve Management Practices; and 2. Approving the transfer of up to $1.5 million from the Gas Utility Operations Reserve to the Distribution Rate Stabilization Reserve at the end of FY 2026; and 3. Transferring up to 18% of gas utility gross revenues received during FY 2025 (up to $10.7 million) to the General Fund in FY 2027; and 4. Amending Rate Schedules (Attachment A, Exhibit 1) effective July 1, 2026 (FY2027): ACTION MINUTES Page 2 of 3 Finance Committee Meeting Action Minutes: 04/21/2026 a. G-1 (Residential Gas Service) b. G-2 (Residential Master-Metered and Commercial Gas Service) c. G-3 (Large Commercial Gas Service) MOTION PASSED: 2-1, Lauing no 2. Staff and the Utilities Advisory Commission Recommends the Finance Committee Recommend that the City Council Adopt a Resolution Approving the FY 2027 Electric Financial Forecast, Approving a Reserve Transfer, and Amending Electric Rate Schedules E-1 (Residential Electric Service), E-1 TOU (Residential Time of Use Electric Service), E-2 (Residential Master-Metered and Small Non-Residential Electric Service), E-2-G (Residential Master-Metered and Small Non-Residential Green Power Electric Service), E-4 (Medium Non-Residential Electric Service), E-4-G (Medium Non-Residential Green Power Electric Service), E-4 TOU (Medium Non-Residential Time of Use Electric Service), E-7 (Large Non- Residential Electric Service), E-7-G (Large Non-Residential Green Power Electric Service), E-7 TOU (Large Non-Residential Time of Use Electric Service), E-14 (Street Lights), E-EEC-1 (Export Electricity Compensation), and E-NSE-1 (Net Metering Net Surplus Electricity Compensation); CEQA Status: Not a project. MOTION: Councilmember Burt moved, seconded by Councilmember Lauing, to recommend the City Council adopt a Resolution (Attachment A): 1. Approving the Fiscal Year 2027 Electric Utility Financial Forecast shown in this staff report and attachments; and 2. Approving the transfer at the end of FY 2026 of up to $5 million from the Electric Utility Distribution Operations Reserve to the Electric Utility Capital Reserve; and Amending Electric Rate Schedules (Attachment A, Exhibit 1) effective July 1, 2026 (FY 2027): a. E-1 (Residential Electric Service) b. E-1 TOU (Residential Time of Use Electric Service) c. E-2 (Residential Master-Metered and Small Non-Residential Electric Service) d. E-2-G (Residential Master-Metered and Small Non-Residential Green Power Electric Service e. E-4 (Medium Non-Residential Electric Service) f. E-4-G (Medium Non-Residential Green Power Electric Service) g. E-4 TOU (Medium Non-Residential Time of Use Electric Service) h. E-7 (Large Non-Residential Electric Service) i. E-7-G (Large Non-Residential Green Power Electric Service) j. E-7 TOU (Large Non-Residential Time of Use Electric Service) ACTION MINUTES Page 3 of 3 Finance Committee Meeting Action Minutes: 04/21/2026 k. E-14 (Street Lights) l. E-EEC-1 (Export Electricity Compensation) to reflect forecasted avoided cost for FY 2027, and m. E-NSE-1 (Net Metering Net Surplus Electricity Compensation) to reflect avoided cost for CY 2025. 3. Increase the hydro reserve up to $6 million over a 2 year period ($3 million per year) with a corresponding reduction in the rate increase MOTION PASSED: 3-0 3. Recommendation to the City Council to: Adopt a Resolution Approving the Fiscal Year 2027 Schedule of Airport Rates and Charges; Accept the Palo Alto Airport Rates and Charges Study; and Authorize Annual Adjustments to Airport Fees and Charges Based on the Airport Benchmark Index (ABI), as Described in the Study; CEQA Status – Exempt Under Section 15061(b)(3) MOTION: Councilmember Lu moved, seconded by Councilmember Lauing, to recommend the City Council 1. Adopt a resolution approving the Fiscal Year 2027 Schedule of Airport Rates and Charges; 2. Accept the Palo Alto Airport Rates and Charges Study; and 3. Authorize annual adjustments to airport fees and charges based on the Airport Benchmark Index (ABI), as described in the Study, as part of the annual Municipal Fee Schedule adoption. MOTION PASSED: 3-0 Future Meetings and Agendas Adjournment: The meeting was adjourned at 6:50 P.M.