Council reviews water and stormwater assumptions; advanced metering project out to bid

The council reviewed utility fund assumptions and projects tied to the FY26 planning estimates, including proposed rate indexes, capital project timing and an out-to-bid advanced metering infrastructure (AMI) project.

Why it matters: Water and stormwater user fees fund utility operations and the renewal-and-replacement (R&R) programs that maintain infrastructure. Changes in rates or large capital contracts affect utility financial stability and customer bills.

Key points

- Rates: Staff proposed a 3% rate index for water driven primarily by project funding (staff said the operating water fund showed no immediate need for a rate increase but project costs support the index) and a 7% rate index for stormwater composed of 3% base and 4% construction-cost component; staff said the stormwater R&R contribution target would be about $761,000 and the FY26 projection would be about $578,000, leaving a projected shortfall of roughly $183,000 to target.

- AMI metering: Amanda Barnes said the advanced metering infrastructure project is out to bid with vendor responses expected in July and that the contract would be funded over five years; staff estimated award activity in September and rollout over the FY26–FY30 planning window.

- Other pressures: Staff noted chemical bid results will change operating estimates (one chemical was affected by a tariff and increased) and that FPL rate cases could raise utility electric expenses (staff estimated a 10% FPL increase in the coming year and said they are pursuing a special utility assessment with FPL). Staff also described a very small projected customer-demand growth of 0.4% for water.

Quotes from the meeting

- “It is out to bid. We should be receiving bids in July. And it's going to be funded over 5 years,” Amanda Barnes said of the metering (AMI) project.

- On the rate indices, staff said: “The 3% has to do with project funding” and that stormwater's 7% proposal includes a 4% construction component.

Discussion versus decisions

- Discussion: Councilors probed the projected R&R contributions, the timing of chemical-bid savings and tariff impacts, and the potential for FPL to provide a special utility rate for the town's water plant.

- Direction: Staff will return refined estimates once chemical bid results are finalized and after further communication with FPL; the council will consider rate adjustments in the upcoming budget hearings.

- Formal action: None at the workshop; rate proposals and AMI contract award will return to council for later action.

Ending: Staff said they will present refined utility numbers as bids are finalized and in the next budget workshop; the AMI procurement schedule anticipates award after bid review and implementation staged across five years.