Vienna Utility Board unanimously approves 2026 water, sewer and stormwater budgets

The Vienna Utility Board voted unanimously to adopt the 2026 budgets for the water, sewer and stormwater funds during its regular meeting, board members said.

The board approved the package after staff reported limited flexibility in the Water Fund and one-time improvements in Sewer Fund capacity tied to retiring debt and equipment payments. Amy, finance staff, told members, “Waterfund is very tight. There is no room to take on any additional debt in Waterfund.”

The action matters because the budgets set spending authority for utility operations and capital projects and guide whether the city will seek rate changes or external borrowing. Board discussion focused on meeting existing debt covenants and the timing and size of possible rate increases.

Staff said a recent payment schedule change and completion of a truck payment and a Parkersburg Utility Board bond will free roughly $300,000 in the Sewer Fund. Amy also said she had moved about $25,000 between Water Fund line items to reflect updated needs. In addition, she reported a routine annual transfer of $100,000 from the General Fund into Stormwater, bringing that fund’s cash balance to about $750,000.

Board members reviewed the bond rate covenant described in the board’s bond documents, which requires operating revenues to exceed operating expenses by 15 percent; staff reported the current ratio was about 40 percent for the most recent year and therefore in compliance. Amy said those covenant levels must be maintained for continued access to favorable bond-market terms.

Members discussed the prospect of water and sewer rate adjustments. Staff said a sewer-rate proposal was already being prepared and a water-rate study was expected to follow; Michael Griffith, referenced by staff as a finance resource, will “look at the finances and come up with” proposed increases and possible tiered rate structures. Board members emphasized that a rate should be set before approaching the bond market for new borrowing.

After discussion, a motion to adopt the FY2026 budgets for water, sewer and stormwater was made and approved by voice vote; the chair announced the motion carried unanimously.

The board also discussed that revenues for these funds are largely rate-based and therefore change slowly without rate adjustments. Staff cautioned that Water Fund had “no room” for new debt next year and recommended caution on taking on additional projects until fund balances recover.