SAC Sewer presents $338M recommended operating budget; $538M capital program includes Harvest Water and biogeneration projects

At a May 14 budget workshop, Sacramento Area Sewer District staff presented the district’s recommended fiscal year 2025–26 combined operating budget of approximately $338 million and a capital program of about $538 million, and outlined staffing and financing plans for planned projects.

Becky Shafer, senior administrative analyst and budget manager for SAC Sewer, presented the recommended numbers and drivers. “The combined recommended operating budget is approximately $338,000,000 and reflects an increase of roughly $24,000,000 or 7.5% over the current year's budget,” Shafer said. She said salary-and-benefit increases (including a 4.5% cost-of-living adjustment, equity adjustments and increased retirement and health costs) and non-labor cost drivers are the main factors.

Staff said the recommended budget includes 18 new positions for FY 2025–26, following 20 positions the board approved midyear, for a total recommended staffing level of 834 positions (four limited-term). Of the 18 proposed, 10 are described as growth positions that convert intermittent field workers to full-time roles; other staffing is dedicated to interceptor program rehabilitation and maintenance needs.

Capital highlights in the presentation include:

- Harvest Water Project — $149.7 million - Biogeneration facility — $64 million - Central interceptor rehabilitation — $41.3 million - Septic conversion projects (Hood, Florentown, Franklin, Linda Manor) — $22.6 million - Rio Consumnes Correctional Center pump station rehabilitation — $11.5 million

Shafer said total financing sources for operating and capital combined were projected at just over $876 million, including monthly service charges, impact fees, interfund offsets, grants and bond/loan proceeds.

Directors asked detailed questions during and after the presentation. Director Orozco asked about the Lifeline Rate Assistance Program and whether it appears in the budget; staff indicated the program is referenced in the budget book and staff will point directors to the specific page. Director Dickinson asked about the septic conversion program and where funding originates; Mike Hewitt, director of policy and planning, said most of the current community septic conversion projects under construction are grant funded by the state and that the district also leverages the Confluence program to assist individual property owners and to help win larger grants.

Directors also asked about chemical supply and cost volatility. Sunny Lundy (staff) said chemical costs — notably sodium hypochlorite — have stabilized after recent spikes. “It actually dropped. It was, I believe, around $2 and increased almost to $2.85 and dropped back to, like, $2.15 or $2.35,” Lundy said, and described securing a local supplier (Thatcher) that helped reduce costs.

Board members requested additional material and follow-up: a clearer breakout of Lifeline program funding and eligibility in the budget book (staff pointed to page 21 where Lifeline appears), more detail on septic-conversion funding and eligibility for individual grants (the Confluence program can provide up to $20,000 depending on income), and continued detail on staffing assumptions tied to the ongoing compensation study and upcoming labor negotiations.

The presentation was a workshop item; no final budget adoption vote was taken at the May 14 meeting. Staff said the board will return later in May for formal budget adoption.