Agency treasurer reports modestly improved results; staff warns PFM study won’t update full pro forma

The Sarpy County and Cities Wastewater Agency’s treasurer told the board on June 24 that the agency’s current finances are faring better than budget expectations for the period ending May 31, 2026, while agency staff cautioned that the ongoing PFM financial review has a limited scope and will not update the full long-range model.

In the monthly dashboard presentation, Treasurer Mark Sedlacek said the agency recorded about $442,000 in connection fees for the period, roughly $63,000 in flow revenue and $12,000 in interest income; period revenue totaled just under $519,000 and year-to-date revenue was $4.7 million. Sedlacek reported period expenses just under $144,000 (year-to-date $3.4 million), giving a period net income of $374,705 and a year-to-date net income of negative $189,000 — significantly better than the $900,000 deficit budgeted for the year.

Sedlacek said the agency booked a $750,000 second-half debt-service payment and that total loan balances are about $94 million. Cash on hand rose slightly to $12.2 million and the agency placed $2 million into a certificate of deposit at Pinnacle Bank. He said reimbursement from the WIFIA loan (about $167,000 tied to the Triad settlement) helped cash flow this month.

Scope of the PFM study and funding outlook: Agency administration said the PFM engagement is focused on three targeted questions (revenue sharing, WIFIA borrowing and reserve offsets) and will produce a draft for review by June 30 with an in-person line-by-line meeting scheduled for August 6. Staff emphasized PFM will not re-run the agency’s full long-range pro forma or incorporate all recent acreage additions and exception scenarios; board members asked whether bond counsel and long-term modeling will address the cumulative effect of additional low-density exceptions.

Project funding for Phase 1B: Administrator-level staff reiterated that the agency is spending design and permitting dollars ("several million dollars") on Phase 1B but currently lacks construction funding; staff said they will continue pursuing federal congressional-directed spending and Department of Commerce opportunities. The agency is seeking construction funding alignment with completed easement acquisitions and permitted designs.

Next steps: The board will review the PFM draft when issued and discuss findings at the August in-person session; staff will continue federal advocacy for construction funding and refine Phase 1B deliverables for permitting and right-of-way work.