City staff updated the council on efforts to address long-standing water and sewer fund pressures and on a program to replace aging water meters with new ultrasonic devices expected to improve measurement and revenue capture.

Department staff said the water and sewer fund remains "cash strapped," prompting monthly cash projections and a push to finalize outstanding audit items. The city has prioritized a replacement list of roughly 200 meters to be installed first; the contractor Hydrocorp will notify residents in advance of appointments and offer flexible scheduling.

Officials said new ultrasonic meters typically read higher volumes than older units and are expected to reduce billing losses over time. Staff estimated the city now purchases about 11,000 units of water from its wholesaler and is only selling back roughly 7,000 units, a gap that contributes to an approximate 40% apparent water loss. Improvements will depend on meter installations, detection of main breaks, and identification of unknown leaks.

Councilmembers asked whether meter replacements will immediately reduce residents' bills and whether the city should pursue outside leak-detection consultants; staff said bill reductions are not guaranteed immediately, because the project will roll out over many districts and the full effect will be phased in. Officials said portions of the work are funded through prior allocations and some infrastructure upgrades will be complete in the coming year.

What happens next: staff will continue the meter rollout and share installation timelines with the clerk and council; they will analyze readings from early-installed meters to help project revenue and potential offsets to future rate increases.