Public utilities outlines FY26 budget, water capacity and Floridan aquifer plan that will require future revenue decisions

Victor Carosi, director of Public Utilities, presented a high-level overview of department operations, finances and long-term water planning to the commission, emphasizing that utilities operate as enterprise funds funded by user fees rather than the general tax base.

Carosi said the city’s water treatment operations produce about 32 million gallons of drinking water per day on average and the wastewater system treats about 47 million gallons per day at the East Central Regional Water Reclamation Facility, which the city operates under an interlocal agreement serving multiple municipalities. He said public utilities employs about 357 people across 17 divisions and manages water distribution, sanitary sewer, stormwater, pumping stations and laboratory testing.

Donna Schur, utilities finance manager, summarized the FY26 operating budget and said the total utilities operating budget is roughly $169 million, with the water/sewer operating fund at about $150 million and the stormwater operating fund about $18 million. She described mandatory transfers tied to governing documents and bond covenants, including a required transfer to a renewal and replacement fund (the transcript listed 8% of gross revenues as the mandatory minimum transfer) and debt service obligations.

Carosi described pressure on revenues and the need to plan for future supply investments. He said the city has secured a long-term permit for Floridan aquifer withdrawals extending into the 2070s (consultant referenced 2073 in the session) and is evaluating a project that would require new wells, a treatment plant and pipelines. "Implementing this source requires revenue beyond where our current rates can support," he said, and the city’s financial rate consultant is modeling options; staff expect to return later this year with data and recommendations for rate action.

Commissioners pressed staff about capacity and affordability. Assistant public utilities director Daryl Graziani said growth is increasing demand by roughly 0.5 million gallons per day per year and that additional capacity (an estimated 5–10 million gallons per day) will be needed by 2035 depending on growth scenarios. Staff emphasized tools to protect affordability, including existing inclining block rates that charge higher marginal prices to large users, and said the city is actively pursuing grant and loan programs to offset capital costs.

Assistant City Administrator Armando (surname variably recorded in the transcript) added that reserves are healthy and that staff are working with consultants to identify borrowing strategies and grant opportunities to moderate rate impacts. Carosi reiterated that the department will return with a long-term rate plan and consultant analysis before any formal rate changes are proposed to the commission.

What happens next: engineering consultants (Corello Engineers) were scheduled to present a more detailed Floridan aquifer study but staff paused the presentation to re-open the file and planned to reschedule that segment; commissioners were told to expect a follow-up presentation later this year with rate-modeling results and specific proposals for financing the aquifer project.