Sanitary District budget workshop outlines modest revenue shifts, SCADA and transfer-station projects

Pat Smoker, executive director of the sanitary district, presented the district's proposed 2026 budget to the Board of Commissioners at a budget workshop on Aug. 26, 2025, outlining revenue changes, personnel-account reassignments and capital projects that together leave the district with a modest positive cash position going into next year.

Smoker told the board that district tax revenue (account 6601) is about 0.3% lower than the prior year and that an increase in circuit-breaker credits of roughly $22,000 accounts for much of that decline. He said code-enforcement costs were moved back to Infrastructure and Development last December and that payroll-split updates removed several code-enforcement expense lines from the 6601 revenue stream. "In the end, overall, this this budget has a will have $732,000 in the plus going into next year," Smoker said.

Why it matters: The workshop review showed the budget is being adjusted for a mix of small revenue changes and deliberate timing shifts rather than a single, large new tax or rate increase. That affects near-term cash balances and the timing of capital projects that district staff and commissioners said they regard as priorities for infrastructure, regulatory compliance and long-term operating costs.

Major revenue and expense points - Tax fund (6601): Smoker said overall revenue in the tax fund fell about 0.3%, driven largely by a roughly $22,000 increase in circuit-breaker credits; at the same time, some expenses (notably code-enforcement salary and operating lines) were moved out of the fund after the mayor reorganized that function last December. - Personnel: Across subaccounts in 6601 Smoker described a roughly 10% decrease in "personnel services" after payroll-split adjustments; he described the changes as housekeeping to simplify cross-charged positions (for example, administrative assistants who support sewer, stormwater and trash functions). - Fuel and vehicle costs: The budget increases fuel-related supplies by about $100,000 in account 0506 and raises lease-payment forecasts by roughly $55,466 to account for an anticipated residential-truck lease (six trucks) amid higher vehicle prices since 2020. - Insurance and allocations: Updated insurance allocation calculations changed several insurance-provision lines; Smoker said a formula error had moved about $120,000 into one subfund and the comptroller corrected that allocation.

Planned capital projects and timing - SCADA upgrade and sewer lining: Smoker identified a planned SCADA (supervisory control and data acquisition) migration to a server and associated PLC updates with a roughly $200,000 line-item. He also described sewer-lining expenses rolled into capital and roughly $450,000'$470,000 of total increased capital outlay in the tax fund, split among lining and the SCADA work. - Transfer station planning: The budget earmarks roughly $283,000 toward a transfer-station capital account at the landfill; Smoker said the transfer station would consolidate drop-off operations at the landfill base, reduce wear on collection vehicles and improve traffic control there, but that construction would remain several years out. - Landfill heavy equipment and compactor: In the landfill fund (2221) Smoker said capital is budgeted for a new compactor and other heavy equipment; he noted heavy equipment prices have risen about 50% since 2021 and described staff discussion about long-term replacement timing and the possibility of specifying smaller models (d6 rather than d8) to save about $500,000 across future purchases. - Biosolids facility deferred: Smoker said money had been budgeted previously for a biosolids facility but that key technologies and permitting remain unresolved; he said the project is being held and that some 2025 capital appropriations will roll into 2026 rather than be spent this year.

Operational and program changes - Recycling program changes: Smoker said the district plans to move away from hand sorting and to ship recyclables for automated sorting; shipping costs are added to contractual services while rebate revenue is expected to offset much of the expense. He said staff budgeted conservatively on timing and revenue because routes and service start dates are uncertain. - Landfill volumes and market changes: Smoker told commissioners the recent purchase of a nearby landfill by a private operator (Rumpke) has already reduced incoming municipal and construction loads, and that construction volumes are naturally lumpy, which contributed to a projected 12% revenue decline in the landfill account. He cautioned that lower tonnage does not produce proportional operating-cost savings. - Stormwater and Bachmeier project: The stormwater fund (6501, 6505) shows increased capital tied to a Bachmeier detention-pond project (budgeted for 2026) and transfers into stormwater capital-improvement accounts; Smoker said the schedule and scope are estimates and that the project had not been bid.

Budget posture and next steps Smoker emphasized that several large capital items were intentionally deferred or re-timed to avoid unexpected cash drains in 2025 and to align with rate proposals and grant or permit timing. He said some funds that appear to be shaved in the operating budget are earmarked as transfers to capital-improvement funds rather than immediate expenditures, and that staff will continue refining payroll splits and capital scopes. Board President Noyes praised the level of detail in the review, saying the presentation "really dealt down into some of the smaller accounts" and appreciated that major projects remain on the "front burner."

No formal votes were taken at the workshop. Staff indicated some line-item numbers (notably insurance allocations) were updated in the week before the workshop and that further adjustments are expected as the budget is finalized and as negotiations with bargaining units proceed.