Public Utilities warns of aging infrastructure; plans meter replacements and redundancy projects

Public Utilities Director Bob Montague briefed council on the department’s FY26 operating and CIP proposals and emphasized the system’s aging pipes and the need for sustained capital investment. "93% of those revenues come from our monthly charges to our customers for water and sewer," Montague told council, adding that the enterprise is operating under a previously approved five‑year rate schedule but that inflation and capital needs make further rate action likely by the end of that plan.

Montague said a major near‑term initiative is a radio‑read meter replacement program to address an aging meter inventory and supply‑chain lead times. He also warned the Norfolk treatment and services contract accounts for roughly 25% of Public Utilities’ operating budget.

Engineering manager Mark Babbitt presented CIP highlights: Great Neck water tank replacement (scheduled lift and commissioning), neighborhood replacements such as the Green Garden water main project (multi‑million dollar investment) and a Royal Palm Arch rehabilitation program. Babbitt said the city has roughly 1,700 miles of water main and that current replacement rates leave an asset‑renewal cycle measured in centuries; he cited the American Water Works Association guidance that a 1% annual renewal rate is a long‑term target.

Councilors asked about coastal and resort pumping reliability and expressed interest in site visits to major projects; staff offered availability for tours. Montague and Babbitt said escalating material and construction costs are the largest threat to matching CIP scope to needs.