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Council adopts 2026 appropriations; staff outlines surcharge study and modest average customer impacts
Summary
Council adopted Ordinance No. 779 (2026 appropriations). Finance Officer Renee Baker presented October financials and an AE2S surcharge study proposing tiered water/wastewater surcharges; staff said average residential surcharge adjustments will modestly change bills and that combined surcharge changes would raise average total surcharge by about $2.41.
The Box Elder City Council on second reading adopted Ordinance No. 779, the appropriations ordinance for fiscal year 2026. Finance Officer Renee Baker walked council through amendments since the first reading, highlighted a contingency line (about $220,000), and noted an expected state contribution to support a police canine unit (roughly $93,000 from the state attorney general’s office) that will fund K‑9 program costs, vehicles and wages.
Baker also presented the October financial report and an AE2S surcharge study intended to recalibrate water and wastewater surcharges that fund specific SRF debt service. She told council that October revenues were about $2.1 million and that sales tax collections were trending above budget (97% of budgeted sales tax through October). Baker explained surcharges are separate from base utility rates and dedicated solely to repay project debt, with a state requirement to maintain 110% debt coverage.
On proposed surcharge changes Baker said the average residential water surcharge for one account would fall to about $2.13 from $4.55, another water surcharge would average about $2.56 (up from $2.25) because of debt coverage needs, and new surcharges for Tank #4 and Cheyenne Westgate Sewer were presented with projected average residential levels. Baker estimated that, after adjustments and additions to surcharges set to take effect on the January usage bill (billing in February), the average customer would see a roughly $2.41 increase in total surcharge to about $14.75 per month; actual impacts will vary by meter/equivalent meter size.
Council asked how early payoff of SRF loans would work; Baker said the city would request state approval to prepay SRFs, and the state may deny early payoff if it would adversely affect the revolving fund. The council approved the 2026 appropriation ordinance by roll call.
