Brad Crater, director of Sewer District No.1 and Waterworks District No.3, walked the finance committee through proposed operating and capital budgets, explaining that user fees are the districts’ primary revenue source and that negotiated agreements with First Solar provide a significant, near‑term revenue boost. Crater said the district budgets roughly $2.8 million from regular user fees and just over $600,000 tied to First Solar contract revenue in his sewer projections.

Crater said one high‑cost line item is repair and maintenance at the two plants. He identified a $1,000,000 expense line that primarily covers repair work and emphasized that overall, the First Solar revenue is expected to produce a rough net benefit after additional operating costs. On capital work, Crater said the UL research center lift‑station project had a budget of $769,300 and bid at about $720,000; a notice to proceed should be issued soon.

Councilors flagged the DEQ loan balance for the levy as a concern; Crater estimated the outstanding principal at roughly $1.8 million (0.95% loan rate). Members also questioned how intermunicipal flows affect plant cost shares; Crater described a flow‑based cost allocation and said the district’s share of usage at Cotton Street is currently about 38 percent while the city is responsible for the remaining flow allocation. He noted that rerouting or development could shift those ratios and urged caution.

On the ARA water plant, Crater reiterated that First Solar agreed to a flat two‑year water service rate to help the parish build operating cash to run a plant long term. He said the ARA plant’s budget is independent of CoTo Water and that First Solar “funds all of it” at the ARA site, with no cost to CoTo Water customers.

Crater opened the presentation for questions and said the district will return with more details as projects move to contract.