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Board recommends FY25–26 regional reuse O&M, CIP and debt budgets to City Council
Summary
The Board of Public Utilities recommended that City Council approve the FY25–26 regional reuse system operating and maintenance, cash-funded CIP and debt service budgets and resulting partner cost allocations; staff described the regional budget, partner allocations and a planned $35 million bond for electrical work at Laguna Treatment Plant.
The Board of Public Utilities voted to recommend City Council approve the fiscal year 2025–26 regional reuse system operating and maintenance, cash-funded CIP and and debt-service budgets and the resulting partner cost allocations.
Nick Harvey, Deputy Director of Administration, presented the regional budget. Staff said the regional O&M request totals $53.4 million (an 11% year-over-year increase), the regional cash-funded CIP request is $12.0 million and total regional expenditures across categories are about $84.6 million. Staff also budgeted $6.8 million of miscellaneous revenues (including interest earnings and contractual escalations such as the town of Windsor geysers revenue, estimated at $1.1 million) resulting in a net partner contribution to the regional operating fund of about $59.4 million.
Harvey said partner allocations were computed on pro rata flow contributions to the Laguna Treatment Plant based on the prior fiscal year’s flows. He said partner allocations are modestly increased for most agencies; Sebastopol showed a small year-over-year decrease. Staff noted that next year’s debt-service schedule is lower by roughly $3 million, which offset some expenditure increases in other categories.
Harvey reiterated plans for a $35 million bond issuance to fund electrical infrastructure replacement at the Laguna Treatment Plant, modeled as a 30-year amortization at 5.5% interest with an estimated $2.61 million annual debt-service impact distributed to partners according to allocation methodology.
The regional budget recommendation was moved by Board Member Wright and seconded by Board Member Mullen. A roll-call vote recorded Board Member Wright — aye; Board Member Mullen — aye; Board Member Bartholow — aye; Chair Galvin — aye. The recommendation passed unanimously with Board Members DeWitt, Bavenport and Vice Chair Arnoni absent. Staff said the recommendation allows the department to proceed to City Council on April 15 and that city budget study sessions and the public hearing for adoption will follow.
