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Finance director outlines utility fund needs, Stonewall payment and CIP tracking plans
Summary
Finance Director Joshua Armstrong reviewed the utility funds for FY2025–26, highlighted that revenues are up and expenditures down by fund, outlined a final Stonewall agreement payment (estimated under $1.5M), proposed a new rate study, and introduced a new CIP staffer to manage project tracking.
Joshua Armstrong, the city’s finance director, led council through the utility funds discussion for fiscal year 2025–26, summarizing revenue and expenditure adjustments, near‑term liabilities and upcoming rate‑study work.
Armstrong said revenue projections rose across all utility funds based on recent rate‑study consultant work and that expenditures were reduced after reallocating some items. He noted that the wastewater budget includes a programmed payment related to the Stonewall agreement that will be the final payment; Armstrong estimated it will be more than the recent $900,000 payment but “no more than $1.5M.”
He recommended a subsequent rate study for both water and wastewater to capture items missed in previous work and to allow the city to identify legacy agreements (including older agreements from the 1990s) that may affect future liabilities. Armstrong said a new staff member has been assigned to review agreements and help prepare for the rate study.
Council discussed salary lines, SCADA cost allocation, capital outlay treatment for vehicles (Armstrong said vehicle purchases are being moved to CIP), and franchise/indirect cost allocations. Armstrong explained franchise and indirect cost decisions could affect the general fund materially: “The direct impact of a decision like that from wastewater is it is over $1,000,000 in revenue for the general fund,” he said, and recommended council direction on the metric to use for any continued allocation.
Armstrong also presented a draft CIP information‑sheet approach and introduced Joanna, a new employee who will take lead on CIP tracking. The council thanked staff and adjourned the meeting at 06:39.
Next steps: staff will prepare the rate‑study scope, finalize the remaining Stonewall payment documentation and continue CIP dashboard and project‑sheet work for future council review.
