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Public Works reports development-driven revenue gains; staff says capital delays pushed projects into later years
Summary
Public Works updated the council on the Water Worth Utility Rate Modeling Program, reporting $368,000 in additional water revenue and $176,000 in additional sewer revenue tied to development, several capital projects moved into 2026–2028, and a $400,000 UV bank replacement added to the 2026 forecast.
Amy Doherty, Public Works business asset senior manager, updated the council on the Water Worth Utility Rate Modeling Program and said the department has revised its five-year rate models using actual 2025 results and adjustments for the 2026 budget.
Doherty said the updated model shows the water utility realized $368,000 in higher revenues “from general facilities charges, driven by more development activity than anticipated,” and that operating costs rose by about $200,000 because of higher fire and casualty insurance costs. “You can see the net effect in the side by side model comparison,” she said, noting the revised chart (right) reflects actual 2025 results and future-year forecasts while the left chart reflects last year’s predicted data.
On capital timing, Doherty said two water projects were delayed, moving expenses and associated financing into 2026. The Silverhorn Deep Well project “moved approximately $1,700,000 in 2025 expenses and the associated loan proceeds into ’26,” and the Reservoir Road booster station project moved about $555,000 in expenses and the associated grant proceeds into 2026.
For the sewer utility, Doherty reminded the council the previously approved five-year plan included a 4.5% annual rate increase and a 3% increase in general facility charges. She said sewer revenues rose by $176,000 from general facilities charges and that expenses fell by roughly $200,000 due to a decrease in fire and casualty insurance costs.
Doherty identified three sewer capital projects that shifted timing: the West Gwynne Bay Road Sewer project moved roughly $11,300,000 in expenses and associated grant revenues and loan proceeds from 2025–2027 into 2026–2028; the Dome Run lift station rehabilitation shifted about $700,000 into 2026; and the general sewer plan shifted roughly $125,000 into 2026. She also said a $400,000 need for the UV bank replacement at the water reclamation facility is now included in the 2026 forecast.
Despite the adjustments, Doherty said the two models retain the same general shape and “indicate we remain largely consistent with the financial outcome we expected.” She told the council staff will provide another update midyear as the city starts the 2027 budget process.
No formal motions or votes were recorded during the presentation; staff presented updates and answered no recorded questions in the transcript.
