Commissioners discuss FY27 budget, capital plan and a $546 million water-infrastructure estimate

County budget staff presented Draft 2 of the 2027'036 capital improvement plan and the proposed FY27 operating budget and responded to commissioner questions about long-range water-infrastructure estimates and borrowing.

Zane Garrett, deputy director of budget and finance (S8), said the FY27 budget was reduced by about $400,000 and the 10-year capital plan by about $21.3 million after re-prioritizing projects and adjusting for grant expectations. Garrett said some airport projects were deferred and public-safety funding for FY27 was reduced after a state grant did not materialize.

Commissioners focused extensive questions on a line in the plan described in the packet as a $546,000,000 estimate for water-infrastructure development in the out years. Garrett and other staff said that figure is a high conservative estimate and is largely in out-years; they also described the mechanics for borrowing. Garrett explained water and sewer bonds are treated separately and are limited to "10% of the assessed value of all real taxable property in Washington County," which he said would, hypothetically, permit another $1 billion for water and sewer infrastructure under the current limitation.

Commissioners asked how those borrowings would be repaid and how they would affect taxpayers and ratepayers. Staff replied that bonds issued under the Water and Sewer Act are supported by water and sewer revenue and that tax-supported general-obligation debt would be required only if revenue could not support debt service. Garrett said a debt-affordability analysis exists and will be continually updated as the county moves closer to any borrowing decision.

The transcript records discussion of current system capacity: a commissioner asked whether water capacity is at about 85 percent; staff confirmed that capacity constraints are an input to the water-infrastructure planning and that building new wells or treatment capacity is being explored.

The board also voted to approve a budget adjustment reallocating a previously centralized utility-administration line into distinct water and sewer projects for water-quality security improvements. The motion was made and carried by voice vote recorded in the transcript as 4-0.

Budget documents referenced in the packet and the debt-affordability slides (noted by staff) include more granular project lists and assumptions that commissioners requested be shared with the public.