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Sewer and waterworks directors point to First Solar revenues as key to operations and projects
Summary
Sewer District No. 1 and Waterworks District No. 3 directors told the finance committee that user fees remain the base revenue but that contract revenue from First Solar materially boosts 2026 projections; projects include lift‑station upgrades and a budgeted $769,300 project for the UL Research Center lift station.
Brad Crater, director for Sewer District No. 1 and Waterworks District No. 3, presented the districts’ 2026 budget proposals and emphasized that user fees remain the primary revenue source but that the First Solar contract is reshaping near‑term finances.
Crater said the sewer budget assumes a $3.37 per 1,000‑gallon rate on a projected First Solar discharge volume (budget line assumed at 500,000 gallons per day for 362 days), a projection he said supports roughly $600,000 in contract revenue to the district. "At the peak of sewer discharge from First Solar, we would anticipate a peak of about 600,000 per day," he said, but he noted actual flows have been lower to date.
On costs, Crater described personnel allocations for shared employees between sewer and waterworks (a 50/50 split for certain positions) to reflect interdepartmental duties and said projected operating expenses remain conservative. He also addressed plant utilization and cost allocations: he estimated the district accounts for about 38% of flow at one partnered plant while being contractually responsible for a larger share of capital improvements.
Crater discussed forthcoming projects and procurement activity. He said bids have been opened for the UL Research Center lift‑station project (budgeted at $769,300) and reported a low bid near $720,000 with a notice to proceed expected soon. He also described Orange Grove smoke‑testing and manhole realignment that should lead to a new lift station installation.
On debt, Crater estimated an outstanding DEQ loan principal of about $1.8 million (he asked members not to quote the figure precisely), and he warned the committee to be mindful of potential cost shifts if outside line rerouting changes flow allocations between plants.
The districts did not record any formal votes during the presentation; directors said some capital projects will proceed to notice to proceed or further council action as procurement and grant matches are finalized.
