RES 2025035 - Laserfiche WebLink

Other operating expenses are projected to increase by 14.9 percent in FY 2025/26 and 12.7 percent in FY 2026/27. The overall increase is primarily due to three positions added in FY 2025/26, including an Associate Engineer and two Utilities Operators, and five positions added in FY 2026/27 including two Associate Engineers and three Utilities Operators, to support operations and the delivery of capital projects identified as part of the Water System Management Plan. Total expenses for the Water Fund are projected to increase by 7.8 percent in FY 2025/26 and 8.2 percent in FY 2026/27. Table 10 below summarizes revenues and expenditures for the four years ending FY 2026/27. Table 10: Water & Recycled Water Operating Fund Summary $42,956,003 $45,173,285 ($1,592,636) ($2,084,136) ($24,194,417) ($25,525,110) ($14,848,862) ($16,737,463) ($39,043,279) ($42,262,573) $2,320,088 $826,576 Sewer Fund Sewer revenues are expected to increase by 3.1 percent in FY 2025/26 and an additional 3.2 percent in FY 2026/27. A rate study is scheduled to begin at the end of 2025, following completion of the Sewer System Management Plan (SSMP) and the Long -Term Sewer Capital Improvement Plan (CIP). In the interim, sewer rates will be adjusted based on the Consumer Price Index (CPI) until the study is complete. Like the Water Utility Program, the Sewer Utility Program also lacks funding for infrastructure investment. Although the Sewer Fund reserve is projected at 36.8 percent at the end of FY 2025/26, which meets the 35.0 percent reserve target. This was the result of reduced or no annual transfers to the sewer capital fund for capital improvement projects and reduced repair and replacement funding in prior fiscal years. For FY 2026/27, the reserve level is expected to go down to 28.3 percent. The rate study is expected to address the funding needs to support critical capital projects, supplement operational needs, and restore the reserve level. A majority of the customers' sewer fees are the regional sewer fees charged by DSRSD. The Budget assumes DSRSD fees will increase by 3.0 percent in FY 2025/26 and FY 2026/27. Other operating expenses are projected to increase by 11.7 percent in FY 2025/26 and 2.5 percent in FY 2026/27. The increase is primarily due to new positions to meet compliance requirements and operational needs, including an Environmental Specialist and two Utility Operators starting in FY 2025/26. Total expenses for the Sewer Fund are projected to increase by 6.1 percent in FY 2025/26 and 2.8 percent in FY 2026/27. Table 11 below summarizes revenues and expenditures for the four years ending FY 2026/27. The projected deficits are expected to be eliminated with rate increases. 37