Wastewater budget shows proposed 10% rate increase; $20 million hurricane relief funds awarded but not yet entered in budget

Brandy (staff member and budget presenter) told the commission the wastewater fund carries a required reserve of about $4.5 million and has roughly $9.3 million in current projects. Staff proposed a 10% wastewater rate increase for fiscal year 2026 "because rates have not been increased in many, many, many years," Brandy said, and cited aging infrastructure and operating costs as drivers.

Brandy said the city has been awarded about $20 million in supplemental funds from hurricane relief (described in the meeting as funds from hurricane Fiona and Ian), but staff has not yet incorporated those dollars into the FY26 budget because they are still working with the engineer (Dewberry) to develop a list of projects. "This does not reflect that because we're still waiting to figure out," Brandy said of the $20 million; she said once staff receives the Dewberry project list the funds will be added into the budget.

Current capital work includes a Venetian Isle system upgrade (about 70% complete, expected by October 2025) and Turnpike-related plant work at 90% design with another roughly $1.5 million in budgeted costs. Staff said they expect possible savings on the Turnpike plant expansion of around $2 million but will not know final savings until project completion.

Brandy also noted a change in how contract services for meter reading are budgeted: meter reading moved in-house and associated contract costs were reclassified across divisions. The $20 million in hurricane-related funds remains contingent on a finalized project list and subsequent budget amendment. No formal rate change was adopted at the workshop; the 10% increase is a staff recommendation subject to future commission action.