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Committee reviews draft 2026 utility budgets; sewer capital spending drives cost rise
Summary
At a Sept. 16 committee of the whole workshop staff reviewed draft 2026 budgets for water, sewer and municipal broadband, flagging major sewer capital work (Bowlby Lift Station replacement and West Fulton Street reconstruction) that drives a projected one-year rise in expenses.
City staff presented draft 2026 utility budgets at the committee of the whole on Sept. 16, reviewing water, sewer and the municipal broadband utility (Waupaca Online).
Water: staff reported steady growth in water sales, from about $1.33 million in 2023 to $1.57 million in 2025, attributed mainly to residential development and recent rate increases. Expenditures were modestly higher overall; meter expenses rose (tied to upgrades and lead-reduction fixtures), while meter-reading costs fell due to newer software. Staff flagged a drop in fringe-benefit expenses connected to one fewer water-department staff position. The water utility fund balance was reported as growing year over year.
Sewer: total revenues were projected at roughly $4.86 million for 2026, up from $3.53 million in 2025, but total expenses were forecast to rise 49% because of major capital investment: the Bowlby Lift Station replacement, West Fulton Street reconstruction, well rehabilitations, and other prioritized end-of-life infrastructure work. Sludge disposal and collection-system maintenance costs were highlighted as increasing significantly. Staff said an emergent SCADA (supervisory control and data acquisition) issue also affected the budget and that the 2026 dip in net position was expected to be a one-year situation.
Waupaca Online: service revenues were projected to edge down to about $292,700 in 2026 from $316,500 in 2024 amid increased competition from new wired providers. The utility completed several equipment upgrades in 2025; operating expenses were steady and the fund balance was reported at $383,738 at the end of 2024. Staff flagged competitive pressure where wired entrants expand into previously unserved areas.
Councilors asked staff for clarifications on industrial customer revenue declines (one large industrial customer ceased operations), SCADA, the life expectancy of distribution mains (50 to 75 years depending on material), and well capacity: staff said a prior well-capacity study shows doubled firm capacity and that the system can meet demand and fire-flow requirements even with large wells offline.
Why it matters: the utility budgets determine rate needs and capital- project timing. Significant 2026 sewer outlays will affect fund balances and could lead to future rate discussions if coverage ratios decline.
No formal action was taken; staff will incorporate feedback into the budget process and return for formal budget adoption later in the fall.
