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Council hears water, sewer and wastewater projections; staff says rates will require future adjustments
Summary
Staff outlined pro forma projections for utility funds and said recent rate changes plus projected cash balances keep reserves healthy through FY27 but additional rate adjustments are likely in 2028–29 to sustain targets.
Janine summarized the enterprise funds for water, sewer and wastewater, reporting the water fund projects operating revenue of $17.8 million and total revenue of $20.9 million in fiscal 2027, with a projected year‑end balance of about $15.01 million if the budget is adopted as proposed.
She said the sewer fund is projected to need $836,627 from cash to balance the budget this year and would close fiscal 27 with an available cash balance near $2.02 million, while wastewater has modestly positive operating results and ends the year well above reserve targets. Janine told council that the recent water rate adjustment contributed to improved long‑term projections but that future rate adjustments remain likely to prevent the funds from falling toward the reserve requirement in 2028–29.
Councilor Sweeney asked whether the sewer fund appears to be "overcharging" ratepayers; Janine and staff responded that prior December projections anticipated future rate increases to balance capital needs and inflation and that staff will continue to recommend phased rate adjustments as needed.
Staff emphasized reserves and pro forma scenarios and said operations will continue to be monitored; councilors were given workbook pages with detailed fund schedules and encouraged to request deeper, division‑level analyses if desired.
