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Board adopts tentative FY27 budget and preliminary rates amid rising CIP and debt service
Summary
The board approved a tentative FY27 budget of $368,834,459, reflecting a large CIP spending increase (about $302M projected) and recommended base‑rate and use‑rate changes (staff projected $1.18 per thousand gallons use charge for FY27); the board adopted Resolution 2026.03 to set preliminary schedules of rates, fees and charges.
Ann Lee presented the authority’s tentative FY27 budget and supporting rate model on April 1, explaining drivers behind revenue and expense changes and framing options for an interconnect charge for non‑member water sales.
Lee said the tentative FY27 budget totals $368,834,459 and that most near‑term spending is driven by CIP ($302 million projected for FY27), financed in part with recent 2025 bond proceeds and an updated DeSoto payment schedule. She summarized revenue drivers: projected water sales increases (approximate $9 million) and identified grant funding of about $76 million intended for CIP use in the coming fiscal year.
On rates, Lee explained the authority’s base charge and water use charge components. The rate model shown to the board reflected a projected water‑use charge of $1.18 per thousand gallons for FY27, with modest annual increases projected thereafter. The board voted to adopt the tentative budget and directed staff to include an updated interconnect charge in the tentative budget using option one as a placeholder; detailed interconnect pricing and any adjustments will be finalized through the budget process and returned to the board in June.
The board also approved Resolution 2026.03, which establishes preliminary schedules of rates, fees and charges as part of tentative budget adoption. The motion to adopt the tentative budget and resolution passed unanimously.
