The Environmental Services Utility Board reviewed the proposed fiscal 2025–26 budget and an attached capital list at its July 21 meeting and moved to recommend the budget to the full city council.
Comptroller Rogers, the utility’s finance lead, said, “Actual year to date expenses are currently 13.2% below budgeted or 847,846 less than budgeted.” That shortfall, plus revenue increases tied to rate changes, is driving the utility’s fiscal position as staff presented the proposed spending plan.
The plan includes roughly $2,308,000 in self-funded capital for the coming year, with line items staff highlighted in the committee packet. The list calls for building and property work (tuckpointing, seal coating), upgrades to the Amtrak waiting area, four used dump trucks and one new truck on order, a proposed salt‑barn rebuild, lift‑station repairs and a $150,000 entry for a grinder at Lift Station 500. The packet also shows $585,000 for work in Basin 9 — described in the meeting as manhole and I&I (inflow and infiltration) repairs — and a broader $1,500,000 placeholder for future sewer lining across basins in subsequent years.
City Manager (name not specified in the transcript) and Superintendent Newton were cited by the mayor as contributors to the budget development; the mayor asked committee members to prioritize projects that should be bonded versus those paid from cash on hand. The packet and discussion clarified that the $2.3 million in the capital list is intended to be paid from surplus and operating revenue rather than new bonding. The mayor said the city generally reserves bond proceeds for projects with long useful lives and prefers to use cash for shorter‑lived assets.
Capital highlights discussed:
• Amtrak waiting area: upgrades to doors, interior work and a potential QR‑code access system tied to ticketing to reduce after‑hours break‑ins. The work is presented as city improvements to the depot waiting area.
• Salt barn: an insurance payment of about $55,000 has been received for earlier damage; staff recommended budgeting an additional up to $75,000 so the rebuilt facility will be concrete‑based with a prefab cover (estimated total near $130,000 depending on options). Staff said the rebuild should start promptly so new salt deliveries can be stored before winter.
• Lift‑station and sewer work: the packet includes $150,000 for a grinder at Lift Station 500 and $585,000 programmed for Basin 9 manhole and lining work this year. Staff said the larger $1.5 million figure in the packet is for multi‑year I&I work in future summers.
• Vehicles and equipment: funding for several vehicle replacements, one new lab truck, software implementation and a $28,600 purchase for a heavier vibrating roller (separately approved in the meeting) were discussed.
Comptroller Rogers told the committee the revenue forecast for fiscal 2026 is $25,347,000 and that the ESU fund surplus is estimated at $745,704. The manager and comptroller noted that sewer treatment costs are rising and that industrial sewer rates were increased more than residential rates to better match cost responsibility.
Committee members asked about timing and funding. Alderman Johnson moved to recommend the ESU budget to full city council and Alderman Swanson seconded; the chair conducted a roll call after the motion. The transcript records the motion, second and roll call but does not record a final tally in the committee minutes provided.
Why this matters: the recommended budget steers more than $2 million of capital spending without additional bonding, and earmarks funds for sewer infrastructure and stormwater‑related repairs that affect rates and long‑term maintenance.
Members flagged several follow‑ups: confirm the overtime line item level, finalize the exact salt‑barn contract price and continue the more detailed procurement work for the Basin 9 lining project before city council consideration.