Essex Junction Council approves FY26 utility budgets, schedules June 11 public hearing on rates

The Essex Junction City Council approved the city's FY26 enterprise fund operating and capital budgets for water, wastewater, sanitation, stormwater and the EJRP program fund and voted to warn a public hearing on rates set for June 11, 2025.

City staff told the council the combined user-rate increase across water, wastewater and sanitation would be nearly 20 percent, representing about $135 on an average household bill for FY26. Jess, a city staff presenter, said that the budgets grew but that rate increases outpaced budget growth because of declining water consumption and a falling number of equivalent units used to spread fixed costs.

The gap between budget and rate changes, staff said, is driven in part by lower systemwide water consumption, which reduces the number of billed equivalent units (EUs), so fixed costs are spread over fewer units. Jess said the Water Fund budget rose about 8.5 percent while user fees for water would increase about 15.2 percent, in part because of a proposed 4.95 percent rate increase from the Champlain Water District and an expected state water fee increase of roughly 13.5 percent. Chelsea, a wastewater staff member, described infiltration and inflow (I&I) and said Williston has been proactive in finding and repairing sources of groundwater entering the collection system, which has reduced billed flows from Williston in recent years.

Key budget and rate points presented to the council included:

- Water Fund: about an 8.5 percent budget increase; a 15.2 percent increase in user fees; drivers include Champlain Water District charges and state water fees.

- Wastewater Fund: about a 7.3 percent budget increase; a 24.2 percent increase in user fees; staff cited higher biosolid subcontractor expenses, adjusted permit and license costs, and efforts to raise inspection-fee revenue.

- Sanitation Fund: approximately 21 percent budget increase and about a 23 percent increase in user fees; staff noted adjustments to two-party revenue lines and pump-station costs.

- Stormwater Fund: fewer material changes from the previous draft; the proposed equivalent residential unit (ERU) charge would be $54.32 (the packet earlier projected $84.75 before council decisions to phase capital contributions).

Staff also told the council they reallocated payroll and benefits across enterprise funds after a work-allocation review, increasing those line items in water and sanitation to align expenses with where staff actually spend time. The EJRP program fund and enterprise capital program saw no material changes since the previous presentation, staff said. A small senior-center fund balance of just over $16,000 remains available for future programming; staff said no FY26 senior center budget is proposed until renovations are complete.

The council moved to approve the FY26 enterprise fund budgets as presented and to warn a June 11 public hearing to set rates for water, wastewater, sanitation and stormwater. The public hearing requirement was noted as part of an agreement with a large user, GlobalFoundries, so that the company and the public may comment on large-user rate proposals. The council approved both motions by voice vote with no nays recorded.

Staff next steps include finalizing budgets, continuing the work to refine the allocation of administrative fees and preparing materials ahead of the June 11 hearing. Council members asked several technical questions about flow metering, septage volumes and how development in neighboring jurisdictions could affect future capacity and costs. Chelsea said Williston's recent I&I reductions lower its billed flow; staff are planning additional metering in summer projects to improve flow accounting.

The council's approval triggers preparation for the public hearing and continued staff work to refine revenue estimates and operating allocations for FY26.