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Council hears increases in water and wastewater budgets; commissioners point to regulatory and energy costs, request follow‑ups
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Summary
City officials said wastewater and water enterprise budgets face upward pressure from regulatory compliance, contracted services and energy costs and that the water board’s multi‑year rate plan includes an 8.5% step for the current year.
DPI officials briefed the council on wastewater and water enterprise budgets, citing higher costs driven by regulatory compliance, contracted services to meet federal and state administrative orders, increased energy costs at pump stations and ongoing capital needs.
Wastewater: Director noted the wastewater budget includes increases tied to contracted services needed for permit compliance, rehabilitation of critical infrastructure, and general price inflation for goods and services. The wastewater budget included a 3% vacancy‑savings assumption in the presentation.
Water: Commissioner Pont and staff described the water division’s responsibilities (treatment, distribution, hydrant and valve maintenance, meters and billing) and said the water enterprise budget also includes a 3% vacancy‑savings factor. Councilors raised two recurring issues: a notable projected increase in electricity costs in both enterprise funds and low paperless‑billing uptake.
Why it matters: Enterprise funds fund services by user fees rather than the general fund, and increases can translate into rate actions. The council heard that a five‑year rate structure set by the Water Board includes an 8.5% increase for the current year. Councilors requested a breakdown of electricity estimates, solar credit entries and postage/printing charges tied to bill production. Councilors also pressed for enrollment figures for paperless billing and suggested integrating digital billing options into NB Connect outreach.
Key details - Electricity/solar credits: Councilors asked the energy manager and DPI to explain why electricity lines rose in the wastewater and water budgets while other city electricity estimates were trending down. They also asked why solar credits appear to have declined in the budgets and requested a reconciliation. - Printing/postage: The wastewater billing/printing line showed historical spending around $80k–$87k but the proposed budget listed $134k (a contracted printing/postage arrangement with a vendor was referenced). Staff said some printing went in‑house during the year and that the contractual amount is budgeted in full for FY26. - Rates and reserves: The water board had a multi‑year rate schedule; staff said the current year’s step is 8.5% and that last year’s board action had reduced an originally proposed increase. Staff said the water enterprise has healthy free‑cash reserves but that multi‑year capital and debt service obligations drive rate decisions. The water budget is budgeted for roughly 93 positions with about 15 vacancies noted on the personnel snapshot; staff said hiring is in progress for several trades and the water‑treatment step hire is ongoing.
Follow ups requested by councilors Councilors asked for: (1) electricity reconciliations and explanation of solar credit changes, (2) a print/postage and billing volume breakdown, (3) paperless‑billing enrollment numbers and outreach plans, and (4) historical overtime budgets (fire was asked for overtime history and water/wastewater for comparative context). Staff agreed to supply these items.
Ending Commissioner Pont asked for council support to fund regulatory obligations and capital maintenance; councilors asked for the requested breakdowns to assess whether rate or budget adjustments are necessary.
