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Council reviews midyear finances; sewer fund has about $28M in SDCs as city plans capacity options
Summary
City finance staff reported mid‑year 2025 revenues and a rise in development activity on Aug. 4 and the council set a Sept. 18 public hearing for Ordinance 2025‑11, a 2025 budget amendment.
Finance staff presented a mid‑year financial overview Aug. 4 and asked the council to set a public hearing for an ordinance amending the 2025 budget. The presentation showed year‑to‑date increases in general sales tax receipts and development activity compared with the same period in 2024; staff recommended setting a budget‑amendment public hearing for Sept. 18.
Budget action. Council moved and approved to set a public hearing for Ordinance 2025‑11 (amending the 2025 budget) for Sept. 18. Deputy Mayor Bowman made the motion; Councilmember Ferrer seconded and the motion carried.
Sewer finances and capacity. During the finance briefing staff addressed sewer system finances and long‑term capacity needs. A staff member said the sewer enterprise currently holds “close to 28,000,000” in system development charges and other sewer reserves. Staff and councilors discussed a long‑planned Parallel Force Main as one capacity option; one staff comment referenced an earlier engineer’s estimate in the mid‑$40 million range and another staff estimate that, including design and construction, could approach about $54,000,000. A staff explanation clarified that most of the roughly $28 million in the sewer account comes from system development charges that are restricted to capacity projects and cannot be used for general operations.
Why it matters. The city’s sewer system must plan for growth and capacity projects that, depending on the selected option, can carry tens of millions of dollars in capital cost. System development charges (SDCs) paid by new units fund capacity projects; staff said the SDC balance and the timing of new development will affect when and how any Parallel Force Main or other capacity solution is financed.
Other fiscal highlights. Finance staff reported a 7.1% increase year‑over‑year in general sales tax receipts for the same period, construction and wholesale trade activity up significantly, and development activity up about 82.9% from 2024 for the same year‑to‑date period. The city’s interest income and cash position remain stronger than in recent prior years due to higher short‑term yields.
Next steps. Staff will post and hold the public hearing for Ordinance 2025‑11 on Sept. 18 and continue sewer planning with partner jurisdictions and engineers to narrow cost and phasing estimates for capacity projects. No ordinance was adopted Aug. 4; the council only set the public hearing date.
