Water services focuses on conservation, metering accuracy and Outback facility work as rates rise modestly

Water services staff presented program and capital priorities that place conservation and meter accuracy at the center of the utility budget while continuing major CIP work at the Outback intake and other system improvements.

What staff proposed The department’s proposed biennial budget (across water, sewer, stormwater and laboratory funds) is roughly $388,900,000 for the two-year period (capital-heavy). Staff emphasized three priorities: protecting the watershed and advancing conservation; future-proofing infrastructure; and strengthening workforce capacity.

Conservation and demand management Water services emphasized continuing an aggressive conservation program launched after the 2021 water management and master planning process. Staff reported a decline in gallons per capita per day (GPCD) over the last decade and said the city is continuing rebates and outreach programs (noting high public interest in rebates and conservation measures). Departments proposed about $1.2 million across the biennium for conservation initiatives and said the conservation program is likely to require additional staff over time as demand for rebates and technical assistance grows.

Metering, rates and financial strategy Staff plan expanded meter accuracy testing at the new Juniper Ridge public works campus (new testing bench to run multiple small-meter accuracy checks). Proposed rate increases that informed the budget assumptions include water +4.9%, sewer +1.8% and stormwater +8% in the next rate cycle; together the sample customer bill change is roughly a 4% net increase. Staff noted the conservation puzzle—greater efficiency reduces volume revenue—and said a rate-structure update will be pursued to balance revenue stability with conservation goals.

Capital and Outback facility planning Staff described Outback facility work (Bridge Creek intake and related upgrades) as a major capital priority; a federal grant application was previously pursued but not awarded, and the budget reflects phasing of Outback investments across rate funding and potential future grant funding. Staff also outlined ongoing septic-to-sewer projects, collection-system rehabilitation (including cured-in-place pipe lining that minimizes open trench excavation), lift-station upgrades and water-reclamation master planning.

Why this matters Water rates and conservation strategy directly affect household utility bills, development feasibility, and long-term supply reliability. Staff said conservation investments can reduce the need for expensive supply infrastructure, but they emphasized the need to update rate structure and reserves to maintain fiscal sustainability as per-capita consumption declines.

Ending Water services staff asked the budget committee to support the proposed conservation funding, the rate update process and investments to improve meter accuracy and critical capital at Outback, while promising regular updates as grants and legislative developments evolve.