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San Angelo holds utility budgets flat pending rate study; O&M costs rising
Summary
City staff kept water and reclamation sales flat in the FY26 budget pending a water‑rate study, but flagged higher operations and maintenance costs (electricity, chemicals, testing) and said a forthcoming rate study will recommend revenue changes if needed.
City utilities staff told the council they were holding sales and fees for the water and water‑reclamation funds flat in the FY2025–26 budget pending the results of an in‑progress water rate study.
Shane, who presented the utility slides, said wetter weather had kept sales near current levels and that a conservative projection was appropriate while the rate study completes. He said operations and maintenance costs are increasing—citing higher electricity costs at the water treatment plant, chemical cost increases, and expanded testing obligations—and that staff will return with recommended rate adjustments once the study is complete.
On stormwater, staff noted a small fee increase tied to added properties under management but cautioned that long‑term flood‑mitigation acquisitions and property removals related to recent flooding could change revenue bases because impervious area and fee calculations will be affected.
Council members requested updates as the rate study progresses and asked staff to present timing and community engagement plans for any proposed rate changes.
