Lafayette City council approves 2026 water and Renew budgets just under $100 million

Lafayette City officials approved the 2026 water and Renew budgets at their meeting after hearing a presentation from City Controller Jeremy Deal.

Deal told the council the combined water and Renew budgets total just under $100,000,000 and asked for approval. "I request your approval," he said. He identified the "crux" of the proposal as a 3% raise for all employees and noted anticipated increases in chemical costs and liability insurance that the budgets accommodate. He also said electric power expenses are expected to be slightly down and that a new employee health clinic (in partnership with Franciscan Healthcare) is contributing to cost savings.

Deal outlined key line items: water budgets aggregated to $21,426,845; Renew department totals aggregated to $78,414,520. He said the water operating budget includes ongoing funding for lead service line replacement programs but clarified that lead replacements are accounted for separately and are expected to be supported by grant funding rather than the operating budget.

Council members asked whether demand-driven revenues would rise with city growth; Deal said revenues are budgeted conservatively and that additional revenues from expanded service areas may not materialize in 2026. He also explained a reduced transfer to the water depreciation fund (from $1.8 million in 2025 to $1.5 million in 2026) driven by project scheduling and anticipated bond issuances.

After discussion the council moved to adopt Resolution 01-2026. The motion was seconded and approved by voice vote.

The vote completes the council's approval of the operating and depreciation plans for Lafayette's water and Renew utilities for 2026. The council did not set a specific date for implementation changes during the meeting; planned capital projects noted for 2026 include continued lead service line replacement, pump rehabilitation, and the Yulin water main project.