City water and sewer staff on May 22 outlined proposed FY26 utility budgets that together total roughly $65,000,000 and described reserve balances, planned capital work and staffing additions.

Valerie, the utility presenter, said most revenue comes from water and sewer charges and showed that sewer revenue is about twice water revenue. She said the working capital reserves available as of March 31, 2025, were roughly $93,000,000 with commitments of about $16,000,000 and a policy to retain 12 months of operating expenses (about $33,800,000); the presenter described $43,000,000 in excess reserves beyond the 12‑month policy level.

Why it matters: the utility budget supports drinking‑water and wastewater treatment infrastructure, upkeep and major projects that affect service reliability and future capacity.

Staff listed several FY26 goals and capital items: full‑scale biosolids drying operations at the wastewater treatment facility (WERF) under construction; Cherry Lane pump station and force‑main work; Thompson Lane/Battlefield pump‑station replacements; ongoing sewer rehab projects; and biosolids processing equipment and storage. Valerie said water sales are budgeted up about 3.5 percent from last year’s budget and sewer sales about 1.2 percent. The department proposed seven new positions, including four operations and maintenance hires for a sewer clean‑out program, two staff for a valve exercise program and one engineering position to convert a current part‑time engineer‑in‑training role to a full‑time engineer.

Staff also identified planned transfers to reserves for taps and assessment districts, and noted some transfers are down 11.2 percent compared with the FY25 budget. Officials said they plan to apply for an MPDES permit expansion at the WERF and to determine on‑site hypochlorite generation for the water treatment plant.

No formal vote was taken; council members asked clarifying questions about reserve levels, Cherry Lane and easement needs for Thompson Lane widening. Staff said they are pursuing required easements and will return with additional detail as projects advance.