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De Soto City previews 2027 water and sewer budgets; Panasonic production expected to raise revenues
Summary
City staff presented baseline 2027 budget projections for water and sewer funds and recommended holding water rates steady while monitoring fund balances as Panasonic production increases expected utility revenues.
City staff reviewed early 2027 budget work on June 18, focusing on water and sewer funds and the revenue effects as large industrial customers ramp up production.
Staff said the baseline 2026 revenues were budgeted at about $2.5 million plus roughly $650,000 attributed to Panasonic franchise or usage revenues, for a total near $3.15 million. Staff cautioned that projection timing is challenging because Panasonic's production ramp has shifted in prior years.
For 2027 staff projected Panasonic-related water usage could increase by roughly 400,000 gallons per day by the end of 2027 and may reach higher levels in later years, producing an estimated $1.25 million in Panasonic-related revenue for 2027 under the staff projection. Staff said these extra revenues reduce near-term pressure for a water-rate increase and recommended not raising water rates in 2027 while continuing to monitor fund balances and revenue realization.
On the sewer side, staff said a 22.5% rate increase appears in the current multi-year projection but that timing of such an increase will depend on how Panasonic usage actually materializes. Staff also proposed increasing transfers to the water maintenance fund tied to projected commercial revenues.
Council asked clarifying questions about vacancy of some utility positions, the need for additional field studies and the schedule for further budget decisions; staff said more detailed fund-level review would continue in July and August ahead of the revenue-neutral-rate discussion.
