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Abilene reviews preliminary 2027 enterprise budgets, considers banking RFP to earn more interest
Summary
Finance staff presented preliminary 2027 enterprise budgets for recycling, stormwater, water and sewer; commissioners discussed stormwater capital authority (~$467,000), conservative revenue assumptions, recent utility rate adjustments and directing staff to issue an RFP for banking services to increase interest on operating funds.
The Abilene City Commission discussed the preliminary 2027 budgets for the city's enterprise funds at its June 22 meeting, focusing on stormwater, water and sewer operations and how to earn more on cash balances.
"The proposed budget for storm water improves transparency by separating operating reserves from capital improvement funding and includes approximately $467,000 in capital authority for future storm water projects," budget presenter Kelsey said, describing the enterprise-fund package that staff submitted for review. Kelsey said no stormwater rate increase is included in the preliminary budget.
Commissioners and staff debated assumptions used in the utility budgets, including conservative revenue budgeting and projections for fines and penalties tied to delinquent accounts. Kelsey explained that rate increases previously approved by the commission are included in projected water and sewer revenues to help rebuild reserves and pay for capital improvements.
Several commissioners pressed staff on how idle operating cash is invested and whether the city's public checking account is earning adequate interest. Commissioners suggested putting out an RFP for banking services or using sweep-to-money-market arrangements so operating balances earn higher returns. Finance staff said some longer-term investments (for example, proceeds from a $10 million temporary note) are already in higher-yield investments, but operating checking historically earns minimal interest.
Staff also told the commission the state's State Revolving Fund has returned a wastewater (SRF) award for SCADA and network upgrades at the wastewater treatment plant; the wastewater contract is for about $400,000, and staff will confirm whether corresponding water-treatment awards were also approved.
No rate changes or formal budget adoptions occurred at the meeting; staff will return with final budget documents and any recommended banking procurement.
