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Water and sewer officials report strong revenue gains, AMI meter rollout and new debt service for bond issuance
Summary
Water and sewer staff told the finance committee revenues are up about $14.9 million largely from rate increases and improved system efficiencies, noted a new debt service payment tied to a $75 million issuance and said the AMI meter phase will add roughly 18,000 meters over the next 24 months.
Water and sewer department leaders told the finance committee the utility’s revenues are materially higher in the FY‑26 budget draft, driven by rate increases and improved meter capture after beginning an advanced metering infrastructure (AMI) rollout.
Staff said total revenues on the water and sewer side are budgeted about $14.9 million higher than last year; they attributed roughly 10 percent of that increase to rate changes and a portion to improved capture and account auditing tied to the AMI project. Officials said the department has reduced unread or “damaged” meters from roughly 5,500 to about 2,400 in the current year as part of efficiency work tied to the AMI rollout.
Finance staff told the committee the budget reflects debt‑service costs from a recently closed $75 million issuance; debt service on that issuance was reported at about $4.6 million. Water and sewer staff also noted planned staffing additions and reorganizations: a linear‑assets director position to support horizontal infrastructure work, two additional operations assistants for plants and other reclassifications that collectively increased salary line items.
On AMI rollout timing, staff said the next phase will add about 18,000 meters and should be complete in October (the phase spans roughly 24 months), putting the system near half complete when combined with meters already installed. Department staff said they are using the AMI rollout as an opportunity to audit accounts, update addresses and correct billing issues (for example, applying the correct sewer surcharges and capturing missed sewer charges), which improves revenue capture.
Committee members asked about vacancy levels (staff reported roughly 199 total water/sewer employees and about 17 vacancies) and about the causes of the revenue gain; staff described a mix of rate increases, improved customer capture and operational efficiencies rather than a sudden surge in new customers.
Water and sewer leaders said they expect the transition to take time and to continue recruiting and working through construction‑related challenges while pursuing improved service and financial performance.
