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Utilities outlines $305M CIP and proposes multi‑year rate plan to sustain water, wastewater and solid waste systems
Summary
Utilities presented a $420.2M FY27 operating budget and a $305.9M capital plan focused on water and wastewater transmission, treatment expansions and alternative water supplies; the department proposes a five‑year plan with ~7.7% annual system increases and a 4% solid-waste tipping-fee index.
Deputy Director Tim Armstrong told commissioners the Utilities Department is budgeting $420.2 million in operating costs for FY27 and has proposed a $305.9 million capital improvement program to support a growing service area and record visitor demand.
Armstrong emphasized that utilities operate as an enterprise fund supported by rates and fees rather than property tax. Highlights included no requested new full-time positions, a 52% reduction in vacancy rate from prior highs, and cost‑saving measures including a merged general/solid-waste call center ($208,000 estimated savings) and a new biosolids contract intended to reduce long-term disposal costs.
Major capital priorities are water transmission projects, Eastern Water Reclamation Facility Phase 6A (an $81M project adding reclaimed-water storage), and integrated water-supply projects such as Cypress Lake and Taylor Creek Reservoir to supply future potable demand. Armstrong said the FY27 CIP supports 339 projects and a five-year CIP averaging about $347M per year.
To keep systems financially viable, the department reiterated a five‑year rate plan (previously approved) that averages a 7.7% system increase per year (water/wastewater) and recommended a 4% increase in solid-waste tipping fees for FY27 with automatic annual indexing. Armstrong said bond-rated debt and grant funding will be used strategically to balance customer impacts and long-term reinvestment needs.
What’s next: the department will continue stakeholder outreach on rate changes and present final recommended rate ordinances and resolutions for board action prior to October 1.
