Austin Water presents $2.74 billion five‑year CIP, commission approves proposed FY26 budget

Austin Water staff told the Austin Water Commission that the utility’s proposed FY2026 operating and capital plans would support a $2.74 billion five‑year capital improvement program and a FY2026 expenditure budget of about $849.9 million, and the commission voted unanimously to approve the item at the meeting.

The presentation, led by Joseph Gonzales, Austin Water assistant director for financial services, framed the FY2026 proposal around a cost‑of‑service study completed in 2024 and a growing capital program that includes a major Walnut Creek Wastewater Treatment Plant expansion. Gonzales said the proposed package would produce an average increase of $8.71 per month for the average residential customer and about $5.50 per month for customers in the utility’s Customer Assistance Program (CAP). Gonzales said the proposed budget seeks to balance affordability with infrastructure needs and to maintain financial metrics that support stable bond ratings.

Why it matters: the utility is undertaking one of its largest multi‑decade capital programs, including large generational projects staff say are best financed over longer terms. That work, combined with growing operating and debt service costs, is the principal driver of the…