Council authorizes grant application for elevated storage tank and reviews utility budget; staff proposes leak‑detection scans and one new utility technician

The Fair Oaks Ranch City Council on July 2 voted to authorize staff to submit an application to the Texas Water Development Board (TWDB) for funding related to the city’s elevated storage tank project. Public Works and finance staff emphasized that the program prioritizes economically disadvantaged communities and that the city’s relatively high average median household income (AMHI) could reduce competitiveness, but recommended submission because of the potential funding benefit.

"Applications are due by the end of July," Summer Fleming, director of finance, told the council, and staff said successful applicants would be notified in the fall with funding made available in winter through May of next year. Staff noted that grant funds can be used only for the project (not to reimburse previously issued debt) and said they would return to council with award terms and a draft agreement if the city is selected.

During the utility‑budget workshop portion of the meeting, staff presented the preliminary FY 2026–27 utility fund budget and capital improvement program. The presentation included proposed recalculations of annual fees: the water debt service fee was estimated to increase by about $5.80 per month, the surface water fee to decrease by about $0.69 per month, and the combined net impact described was roughly $2.44 per month (staff summarized monthly and annual impacts). Staff reiterated that no volumetric water or wastewater rate increases were proposed for FY 2026–27; a volumetric adjustment is anticipated in FY 2027–28 to maintain long‑term rate sufficiency.

Grant Watton outlined a one‑time request of $63,000 for satellite leak‑detection and asset management services that would provide two systemwide scans per year and 40 hours of on‑site investigation and verification. Watton said the most recent water loss audit (calendar year 2025) estimated non‑revenue water at about 56 million gallons per year — a loss he said equates to roughly $250,000 annually at current rates — and that the scans would help prioritize repairs.

Staff also recommended adding one utility technician to address rising workload (meter replacements, valve exercising, leak response and preventive maintenance), describing the position’s all‑in cost at approximately $64,950; staff said a second technician is likely needed over the next budget cycle but recommended phasing the hire. Council asked staff to model how the added FTE would affect the city’s five‑year financial plan and to confirm that volumetric rates would not change for FY 2026–27 (staff said they would not). Several members asked for additional vendor references and verification of satellite detection results before contract approval; staff said the contract would be brought back to council for authorization.

The council also reviewed key CIP items including an allocated $4.88 million for the next increment of the elevated storage tank construction and other water and wastewater projects in FY 2026–27. The resolution to submit the TWDB application passed on a council voice vote.