City stormwater staff and consultants presented a midterm financial review on Nov. 18, finding that updated equivalent residential unit (ERU) counts and stronger-than-expected growth increased projected stormwater service‑charge revenue by roughly $4 million for FY26–28, but larger-than-projected rate‑funded capital expenditures—largely the Rio de Flag flood-control work—boosted expenses and left a modest net variance against the 2023 study.

Nancy Mann (Water Resources Economics) said ERUs rose because of an internal audit that expanded billed surface area and because growth outpaced earlier projections; that produced about a 17% increase in projected rate revenue over three years. Operating costs decreased slightly in the updated model but rate‑funded PAYGO CIP increased by about $5.1 million over the same period, driven primarily by scope and construction‑cost escalation for Rio de Flag.

The net result over the FY26–28 comparison was a positive difference of roughly $435,000 compared with the 2023 projection. Staff emphasized the city remains on a similar financial trajectory to prior expectations despite the revised capital plan and said the next formal rate review would be in 2028. Council members asked for a public, project‑level capital update so ratepayers can see completed work and remaining projects; staff agreed to provide a CIP status presentation in the near term.