Tampa Bay Water adopts $219.4 million FY2026 operating budget, keeps uniform rate near $2.64/1,000 gallons

Tampa Bay Water on May 19 held a public hearing and adopted its fiscal year 2026 operating budget and estimated capital improvement program, approving a proposed uniform water rate of about $2.64 per 1,000 gallons, roughly $0.02 above the current rate.

The board approved Resolution 2025008 to adopt the FY2026 operating budget after a presentation from Chief Financial Officer Christina Saget and questions from board members. The agency’s proposed total cost to provide water in FY2026 is $219,400,000, with a proposed net revenue requirement from water sales of $202,000,000 after planned uses of reserves and adjustments.

The budget matters because it funds operations, debt service and nearly $255 million in capital improvement program (CIP) spending planned for FY2026. Saget told the board the proposed budget balances projected demand, strategic-plan alignment and inflation while minimizing the rate impact on member governments and customers.

Key figures presented to the board include a projected average system demand of 209.7 million gallons per day and a planned supply mix of about 79 million gallons per day (mgd) from surface water, 12 mgd from the desalination facility and roughly 18 mgd from groundwater. The CFO said variable costs are projected to be about 21% of total costs and fixed costs about 79%, with debt service alone comprising roughly 43% of total costs and growing due to upcoming capital projects. The FY2026 CIP estimated expenditures were presented as $254.5 million (presentation slides showed about $254.5M–$255.45M in different slides), with three large projects — the South Hillsborough pipeline segments A and B and the surface water treatment plant expansion — accounting for the majority of planned outlays.

Board members pressed for additional detail on personnel adjustments and merit distributions after Saget said the proposed budget includes a 3% cost-of-living adjustment and a performance-based merit pool of up to 3%. Commissioner Dave Eggers asked how the merit program is administered; Saget described multi‑category performance reviews, HR oversight for consistency, and a distribution that places higher-scoring eligible employees near the top of the merit range.

Saget described financing choices used to limit the uniform rate increase: $4,000,000 from the rate stabilization account and $500,000 from the operating reserve. She said the member acquisition credits will finish in FY2028, which will help offset future bond debt service increases.

Public comment at the hearing included a statement by Mark Clutho (Clutho Largo) criticizing agency operations and the desalination plant’s delivered volumes; his remarks were part of the public comment record and did not change the board’s actions.

The board called for the vote after public comment; a motion to approve the budget was made by Commissioner Wasdel and seconded by Commissioner Peters. The clerk announced the motion passed (reported as 8–1 in the meeting record). The board formally closed the public hearing and opened the regular meeting following the vote.

Looking ahead, Saget and staff indicated the board will receive further CIP detail and that large capital projects and debt-service pressures will be important drivers of future budgets and rates.

The board’s action: adoption of Resolution 2025008 approving the fiscal year 2026 operating budget and approval to proceed with the estimated capital improvement program expenditures for FY2026.