PHOTO BY JOHN FRYMAN / THE VILLAGE REPORTER
BUDGET TALK … Bryan City Electric Distribution Superintendent Al Sullivan (above) discusses the upcoming 2026 budget at the Bryan Board of Public Affairs meeting on Tuesday, November 18.
By: John Fryman
THE VILLAGE REPORTER
john@thevillagereporter.com
The Bryan Board of Public Affairs held its regular meeting on Tuesday, November 18 and heard a presentation on the 2026 Bryan Municipal Utilities budget.
Following the Pledge of Allegiance, the roll call followed with Annette Schreiner, Bob Eyre, Dick Long, Jim Salsbury and Karen Ford.
Also, Mayor Carrie Schlade, Clerk-Treasurer John Lehner and Director of Utilities Derek Schultz were also present.
Regarding the clerk-treasurer report, Eyre questioned Lehner in regards of the category of unclaimed money funds which already had $29,000 in the fund.
Lehner responded by saying the city basically issues a check that doesn’t get cashed and then puts it into the unclaimed monies fund.
“What usually happens is there is a five-year waiting period in which the money sits in the unclaimed money fund,” commented the clerk-treasurer.
“After five years, we can move that money into the general fund as recommended by the Ohio Revised Code.”
Eyre then asked Lehner if the money can be transferred from the general fund to the Good Neighbors Fund.
“At the very least, the board or the council would have to take action to fund the Good Neighbor account,” said Lehner. “There will be no automatic mechanism for exclude that money into that account.”
A resolution to authorize the board to update the Bryan Municipal Utilities compensation plan for non-bargaining unit hourly and salaried employees was approved.
The plan establishes and manages job classification pay ranges, wage scales and salary schedules for hourly and salary employees except for bargaining unit members of the BMU electric, water, and communications department.
Schultz along with BMU department heads, Jimmy Dunning (Water), Al Sullivan (Electric Distribution), Joe Ferrell (Communications), and Jim Coressel (Power Plant) addressed the board regarding the 2026 budget.
The 2026 proposed budget totaled $29,655,553.00 compared to the 2025 budget of $28,588,282.90, a proposed difference of $1,067,272.00 which reflects a 3.7 percent increase.
“The entire 509 fund balance transfer is recorded as an expense which inflates the total budget,” said Schultz.
“In prior years, the 509 funds did not fully expend its fund balance, so this year appears higher in comparison.”
Schultz added that the BPA will be approving the 2026 budget at its December 2 meeting and then recommending it to Bryan City Council for its approval.
ELECTRIC UTILITY BUDGET
Schultz noted the power supply is BMU’s single largest annual expense, representing 74 to 77 percent of total operating and management costs.
This includes the 2026 AMP (American Municipal Power) Supply forecast $8.2 million ($45.75/MWh) down from $11.9 million due to success winter peak shaving. BMU is expected to see nearly $10 million in transmission and capacity savings.
The Auglaize Hydro Plant and Bryan Solar Field continue generating power at negative costs when savings (T&C) and REC sales are factored in. Renewable resources represent 23.8 percent of BMU’s total power supply portfolio.
An additional solar project is under review for 2026 to further increase renewable generation. The Tallgrass TPA previously approved by the Board also supports long term renewable resources (2027-2042).
ELECTRIC OPERATING & MANAGEMENT UTILITY BUDGET
Schultz commented that charges for metered electric service are $17,700,000 which includes JV4 Transmission, security light charges, special service charges and HEAP payment.
“That’s where the bulk of our revenue is generated for the electric department,” he said. Other operating revenue involves Fiber & Coax Lease agreements ($279,537), renewable energy credits, JV5 refund and pole contact renewals (third party pole attachments).
The 2026 electric budget will have a beginning fund balance of $16,408,924 on January 1, 2026, with budgeted revenue totaling $20,749,659.
Budgeted expenses for 2026 are $20.945,927, which includes a decrease of $2,200,000 transfer to the Capital Fund and debt service payments totaling $114,702.
The estimated year end fund balance in 2026 will be $16,212,656, a decrease of $196,268.
ELECTRIC CAPITAL BUDGET
The 2026 electric capital budget totaled $2,955,275. This includes $3,725 (electric office), $1,875 (clerk treasurer), $1,468,000 (Power Plant), $1,241,250 (Electric Distribution and $160,825 (Electric Communications).
This will include the purchase of Lorntz Substation Transformers ($660,000), GE #6 Controls ($650,000), a motorized Gator ($40,000), Lorntz Substation Engineering ($100,000), a zero-turn lawn mower ($15,000), and Microsoft Exchange 365 ($3,000) with next year’s budgeted items.
Beginning Fund Balance on January 1, 2026, is $3,598,187 with a capital transfer of $2,200,000 from the 501 Electric Fund.
Budgeted expenses for 2026 totaled $2,955,275 with the estimated 2026 Capital Year End Fund is $2,911,788, which shows a balance decrease fund of $686,399.
WATER OPERATING & MANAGEMENT UTILITY BUDGET
The 2026 proposed water revenue totaled $2,746,260. It includes $2,600,000 in metered water charges, tanker water sales, water tap charges, test/water sample fees, reimbursement and miscellaneous non-operating revenue and farm lease ($14,280). It also showed a difference of $9,740 from the 2025 budget.
Water expenses total $3,039,643, which shows an increase of $58,502 from the previous year. This includes a clerk treasurer capital transfer of $225,000, along with debt service to AMI ($135,095) through 2033 and Townline Road ($40,838) through 2029. The distribution and water treatment maintenance agreement totaling $156,400.
The 2026 Water Budget with a beginning fund balance on January 1, 2026, is $3,048,430 which also includes anticipated revenues totaling $2,764,260 with anticipated expenses totaling $3,039,643, a transfer to the capital fund ($225,000) and debt service payments ($175,933), thus bringing the estimated year end fund balance of $2,773,047.
WATER CAPITAL BUDGET
The 2026 Water Capital Budget will spend $!0,066,897, on various projects and equipment purchases.
The budget will also involve four water main replacement projects (East Mulberry Street, West Bryan Street, South Emmet Street and Bement Street), along with two study phases, purchase of network equipment and fiber cabinet replacement.
Beginning fund balance as of January 1, 2026, is $940,129. This will include $225,000 involving a capital transfer from the 502 Water Fund and $240,000 in other revenues.
It will leave an estimated capital year end fund balance of $338,232, a decrease of $601,897, from 2025.
COMMUNICATIONS OPERATIONS & MANAGEMENT UTILITY BUDGET
Communication revenues include charges for service (Cable TV, Cable Modem Internet to be captured in the 501 Electric Fund), MAN Network Inside, Fiber Lease agreements, WAN Network Outside revenue lines created in the 501 Electric Fund.
The projected year end fund balance being budgeted as an expense and transferred to the 501 Electric Fund in 2026 totaled $1,578,934.
COMMUNICATIONS CAPITAL BUDGET
The 2026 Communications Capital Budget will have a beginning balance fund of $68,786 as of January 1, 2026. The fund will then be transferred to the 515 Electric Capital Fund in 2026.
The meeting adjourned at 6 p.m. The BPA will meet next on Tuesday, December 2 at 5 p.m.
