In a recent government meeting, officials discussed critical financial adjustments necessary to address deficits in the wastewater and stormwater funds. The conversation highlighted the pressing need for a rate increase in the wastewater fund to maintain adequate reserves, which are currently alarmingly low.

One official emphasized that without an increase, the wastewater fund could deplete to approximately $380,000, far below the recommended minimum reserve of $2 million, which is typically considered three months' worth of expenditures. This situation raises concerns about the city's ability to respond to potential catastrophic incidents, such as wastewater spills, especially in light of recent street flooding issues.

The proposed adjustments include a potential increase in monthly fees, which would help stabilize the fund and prevent further financial strain. Officials noted that public hearings would be held to gather community input before any final decisions are made.

In contrast, the reclaimed water fund appears to be in a healthier position, with nearly $1 million in reserves. Officials indicated that while a minor deficit exists, they are not inclined to implement a rate increase for reclaimed water at this time, given the greater urgency of the wastewater fund's situation.

Additionally, the stormwater fund, initially projected to face a $1 million deficit, has seen improvements due to a legislative appropriation of $625,000. By reallocating expenditures to a resiliency fund, the stormwater deficit has been reduced to $200,000, while still maintaining $1.3 million in reserves.

The discussions underscore the city's ongoing efforts to manage its financial health while ensuring essential services remain sustainable. As the proposed changes move forward, community engagement will be crucial in shaping the final outcomes.