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Carefree UCFD, Water Company adopt $9.9 million combined budget; 4.4% water rate increase approved
Summary
The Utilities Community Facilities District and Carefree Water Company adopted final fiscal year 2025–26 budgets totaling about $9.9 million and approved a 4.4% across-the-board water rate increase, while staff told board members the company’s revenues will cover debt service despite a lower year-end UCFD balance.
The Utilities Community Facilities District (UCFD) and the Carefree Water Company on June 3 adopted final fiscal year 2025–26 budgets totaling about $9.9 million and approved a 4.4% across‑the‑board water rate increase.
Greg Crossman, a staff member who presented the budgets, told the board the UCFD budget is $4,700,000 and the Carefree Water Company budget is $5,200,000, and that the 4.4% rate increase — the fifth and final year of a five‑year rate plan approved in 2021 — will generate roughly $200,000 in additional revenue for the coming fiscal year. Crossman said a public hearing was held after the May 6 meeting and “no public comments were received.”
The budget package focuses on debt repayment and two capital projects. Crossman said the largest single debt obligation is the Series 2021 bonds at about $1,100,000 per year; total annual debt repayments this year, including a WIFA loan to the town and a capital lease repayment, amount to roughly $1,400,000. The capital projects listed are the Peaceful Place Booster Pump Station Improvement Project and the Silver Saddle Pipeline Improvement Project.
During discussion, Councilman Ross asked about the UCFD beginning balance (about $2,000,000) and an ending balance shown in the materials of roughly $37,000, and whether the district would need to borrow to cover next year’s debt service. Crossman replied that the water company is the revenue generator for the structure — “these are revenue bonds” — and that funds generated by water sales are used to transfer debt service payments into the UCFD. He said the $2,000,000 is primarily reserved for capital projects and that next year the UCFD will begin with a lower balance because of those planned expenditures.
Crossman also said the debt schedule was structured to remain fairly consistent over the next 15–20 years, with the WIFA loan retiring in 2026–27 and the Series 2021 bonds remaining the primary annual obligation. Board member Roth raised concerns about rising long‑term debt service when looking at schedule projections; Crossman explained the planned timing for retirement of the town loan and how that affects future cash flow.
The board voted to adopt Resolution 2025‑02 to approve the final FY2025–26 budgets for the UCFD and the Carefree Water Company, including rates, fees, deposits and charges. The motion passed unanimously; the record shows the chair called for the motion, a board member moved to approve, another board member seconded, and the chair announced the motion “passes unanimously.”
The budgets and the rate action together represent the final annual step of the water company’s five‑year rate plan that began in 2021 and will conclude after the coming fiscal year.
