Council reviews two‑year Water, Sewer and Recreation budget plans and departmental staffing requests

City finance and department directors presented proposed two‑year operating and capital budgets for the Water, Sewer and Recreation funds on May 27 and council voted 5-0 to accept the plan and provide direction.

Finance Director Mike Sung described the proposed fiscal-year 2025–26 and 2026–27 budgets for the enterprise funds and highlighted capital projects and fund balances. Key numbers presented for 2025–26 included: Water — $14.3 million in revenues, $11.3 million in operating expenditures and $5.7 million in capital expenditures (including the La Prenda water tank and Broadway water‑main work); Sewer — $16.8 million in revenues, $14.4 million in operating expenditures and about $8.5 million in capital expenditures (projects include portions of the Madrone pump station, Hillcrest work and SCADA upgrades); Recreation — roughly $3.1 million in revenues and expenditures, with an approximate 50% cost‑recovery target.

Nut graf: Staff recommended six additional full‑time equivalents over the two‑year period: two Maintenance Worker II positions (one each for water and sewer), a pump mechanic shared between water and sewer, a code‑enforcement officer, a parks/rec attendant and a management assistant (the latter replacing an intern role). Staff framed hires as necessary to support capital projects and service levels in the enterprise funds and to improve enforcement and customer service in planning, parks and recreation.

Directors described recent accomplishments: Public Works won awards for capital projects (Marina Vista Park renovation and a nearshore outfall project), the city received a Tree City USA designation, and Recreation reported strong program and rental revenue growth (senior participation up 70%, adult sports up 158%). Sang staff noted a two‑year capital cadence with large sewer and water projects front‑loaded in the coming fiscal years, which reduces fund balances as those projects are built.

Council members asked questions about timing of hires and revenue assumptions; staff said the budget is a two‑year plan and will be updated as revenue and grant information become available, and that midyear adjustments will be brought forward. Vice Mayor and other councilmembers asked for continued clarity on revenue timing and for follow‑up briefings on grants and development impact fees.

Ending: Council accepted the study-session presentation and approved the staff recommendation to proceed with the two‑year budget process; staff scheduled the public hearing and adoption steps for the operating and capital budgets in the coming weeks.