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City of Helena outlines roughly $38 million in fiscal carryovers, ERP progress and proposed water/sewer rate changes
Summary
City staff briefed the commission on multiyear capital carryovers across departments (transportation, parks, facilities, utilities), reported progress on an enterprise resource planning (ERP) project and previewed proposed utility rate increases (3.5% water, 4% sewer) to be considered in October.
City of Helena department heads reported on Aug. 13 that roughly $38 million in capital and grant projects are being carried from fiscal 2025 into fiscal 2026, with major items spanning transportation, parks, facilities and utilities.
Director Danielson and department leads told the commission that the large total reflects multiyear capital projects rather than operating overspends. Key carryovers highlighted included an ERP (enterprise resource planning) software conversion (the commission previously allocated $2 million for the project; staff said about $230,000 will carry into fiscal 2026 and that the ERP implementation is roughly 85% complete), more than $1 million in street and traffic projects (including pedestrian and intersection work and pavement preservation), gas-tax-funded projects of about $2 million and parks and open-lands projects including fuel-reduction work on Mount Helena and Mount Ascension.
Facilities projects included a City-County Building north parking-lot ADA upgrade, HVAC and access-control work in older sections of city buildings, a civic-center barrel-roof replacement and replacement boilers at city buildings. The parks department listed a Centennial Trail segment, courts and field improvements among its carryovers.
Public-works and utilities: Public Works and utilities staff reported multiple ongoing construction contracts and procurement delays tied to contractor capacity and equipment lead times (staff cited a 27-week delay for a replacement transformer damaged in shipping). Wastewater projects highlighted included a scum-pit installation intended to reduce odors and a cured-in-place pipe contract out for bid.
Proposed utility rate adjustments: Utilities staff previewed a proposed rate increase tied to long-term capital needs and debt service. The presentation recommended a 3.5% increase in water rates and a 4% increase in sewer rates; staff said a formal resolution of intent to set rates will be scheduled for October to allow additional notice and to correct a formatting error in the earlier schedule. Commissioners asked clarifying questions; one commissioner noted the packet mistakenly listed a different percentage and staff said the record and forthcoming advertisement would use the corrected figures.
Why it matters: Many of the carryovers are grant-funded or tied to federal reimbursement schedules and multi-year capital work; staff said carrying budgets forward preserves authority to complete ongoing contracts and to submit reimbursement requests. Staff also warned that contractor and supply-chain delays are increasing project timelines and sometimes require carrying funds forward to the next fiscal year to pay late invoices.
Next steps: Commissioners were told the formal carryover ordinance will be placed on a consent agenda at a subsequent meeting, the rate-resolution advertisement will be corrected and reposted with an October hearing date, and departments will return with contract awards and project updates as procurement and construction progress.
Ending: City staff introduced a new budget analyst, Nicholas Coppock, and asked commissioners to expect several carryover items and rate-setting items to return for formal action in the weeks ahead.
