Santa Fe Public Utilities Department unveils FY26 operating budget with major updates

The Santa Fe City Council convened on April 30, 2025, to discuss the proposed operating budget for the Public Utilities Department for fiscal year 2026. The meeting provided an overview of the department, which is divided into four divisions: water, wastewater, environmental services, and utility billing and administrative services. The department is projected to generate nearly $84 million in revenues this year, with over 260 funded positions.

The presentation highlighted the significant increase in the proposed budget compared to previous years, with the water division alone expecting revenues of over $41 million, up from $35 million in fiscal year 2024. This increase is attributed to the need for capital improvements and asset management, particularly as the water division manages approximately $1 billion in assets. The council emphasized the importance of investing at least $10 million annually to maintain these critical infrastructures.

A key focus of the meeting was the transition to a new billing system, named Advanced, which has been a long-standing challenge for the department. This transition is expected to impact all divisions, particularly utility billing, which constitutes nearly 60% of the water division's budget. The council also discussed the implementation of a formal asset management plan to ensure timely replacement and rehabilitation of aging infrastructure.

In the wastewater division, projected revenues are estimated at $21 million, with a significant emphasis on capital improvement needs totaling at least $180 million over the next five years. The council noted the importance of compliance with environmental standards and the ongoing efforts to improve infrastructure decisions, which could involve either rehabilitating existing facilities or constructing new ones.

The environmental services division is projected to generate $22 million in revenues, with a focus on enhancing recycling efforts and public outreach. The proposed budget reflects a 4% increase from the previous year, primarily due to personnel costs and utility billing enhancements.

The meeting concluded with a discussion on the utility billing and administrative services division, which supports the overall operations of the department. The proposed budget includes significant expenditures for the implementation of the new billing system, which is expected to streamline operations and improve service delivery.

Overall, the council's discussions underscored the critical need for capital investment in public utilities to ensure the sustainability and reliability of services for Santa Fe residents. The proposed budget will be further reviewed and voted on in upcoming sessions, with a focus on addressing the pressing infrastructure needs of the city.