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Staff: water fund stable for 2026; PFAS testing progressing, no rate increases proposed
Summary
Finance and operations staff said the water fund is adequate and that no city-proposed water-rate increases are planned for 2026; staff highlighted ongoing PFAS testing, settlement funds and additional test wells with positive early results, with further study expected before any major decisions.
City staff told the council the water fund is stable and that the draft 2026 budget does not propose increases to the city’s portion of water service rates. S2 said the water fund revenues are driven primarily by utility billing and facility fees and are projected to be largely flat for 2026.
S8 updated council on PFAS testing and said the city has received settlement money and drilled additional test wells with positive preliminary results. "We're making progress on the PFAS front," S8 said, noting more study (several months) is needed before definitive recommendations. Staff said they do not propose increases to the city portion of water rates in the draft budget, but cautioned sanitary-district or other regional rate components are outside city control.
No action on rates was taken; staff said they will continue monitoring PFAS test results and present recommendations if remediation or capital work is required.
