Addison's stormwater fund projected to service bond debt as fund balance declines toward target

Town finance staff told the council the stormwater fund currently holds substantial reserves but will use fund balance to service debt issued for street reconstruction projects that include stormwater work. Steve Glickman said the stormwater fund's proposed FY2026 revenue is roughly $2.85 million with operating expenses of about $2.84 million. The three-year projection includes servicing bonds sold last year (including stormwater portions of two projects), leaving the fund with a still-large but declining reserve that staff intends to bring nearer the 25% policy target over time. Glickman said the proposed budget does not include a stormwater fee increase through 2028; the town's plan projects a 5% increase thereafter but noted potential savings if on-site repair work costs less than budgeted. Why it matters: the stormwater fund pays for repairs, stormwater infrastructure and a portion of debt service associated with road reconstruction projects. Using reserves to service debt reduces pressure on the property tax rate in the near term but lowers the cushion available for unforeseen repairs. Direction: staff will continue to monitor repair costs and the fund balance trajectory and report back if adjustments to rates or project timing are recommended.