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Pflugerville staff outline FY2026 utility rate assumptions, rising debt service and master-fee schedule changes
Summary
Finance and utility staff told council on July 8 that water/wastewater debt service will rise sharply in coming years, that staff plans for base- and volumetric-rate updates, and that proposed changes to the master fee schedule would raise some building, permitting and park rental fees while adding or clarifying several charge categories.
Pflugerville finance and utility staff presented the city's FY2026 utility fund assumptions, proposed rate updates and recommended changes to the master fee schedule at the July 8 work session and regular meeting.
Key takeaways
- Staff said the water and wastewater program - has 14 new positions proposed for FY2026 (phased hires; some prorated); and - faces sharply rising debt service related to planned capital and WIFIA/WTD financing. Finance staff said principal and interest for the water/wastewater program are about $22 million in the current year and will roughly double by 2027 and triple by 2029 under current borrowing plans.
- The city's utility-rate model now incorporates updated growth (units), updated annual debt payments and expected impact-fee receipts; staff said a higher-than-expected impact-fee inflow can help ease rate pressure.
- Staff emphasized limitations on using fund balance to avoid rate increases: while cash balances may be used to cash-fund capital purchases or pay down debt, fund balance cannot be counted in…
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