Noblesville Utilities presents 2026 budget forecast and plans bond for two large wastewater projects

Jonathan Margot, speaking for Noblesville Utilities, presented the department's 2026 revenue and expense forecast and outlined several capital priorities the utility expects to fund via a 2026 bond.

Margot said budgeted expenses are projected to increase by about 2.9% year over year and that the department followed the citywide policy of not providing a department-wide cost-of-living adjustment for 2026. On capital needs, he identified two major projects under consideration for bonding: a Headworks Rehabilitation project estimated at roughly $10,000,000 and a Lift Station 20 replacement with a long force main estimated at about $16,000,000. He said the city is evaluating a cash match in the 20% to 35% range to reduce the bond amount.

Margot also reported that Moody's bond rating for the utility improved from AA2 to AA1 and that the department's finances compare favorably to other utilities in the state. He discussed steps to address recurring odor complaints, including retaining an odor-control specialist, increased cleaning and flushing, and planned systemwide odor studies tied to the Headworks and Lift Station projects.

Councilor Johnson asked for clarification on funding streams; Margot explained the utilities are enterprise funds funded primarily through sewer rates, connection fees and restricted growth funds, and said those revenue streams are separate from the civil city property-tax funds and not affected by Enrolled Act 1 impacts on civil city property tax revenue.