CIP 2027-2031 (Final) - Flipbook - Page 21
PROPOSED 5 YEAR CIP - 1ST READING
JULY 16, 2026
Water & Wastewater Funding Analysis:
The Water/Wastewater fund projections are based upon current FY 2025/26 estimated
revenues with an annual 4% increase in water and sewer revenue and a 3% increase in all
other revenue for FY 2027/31. The total FY 2027/31 revenue estimate is $113,776,820,
approximately 1.08% more than the total revenue needed to fund all projects and other
expenses of this fund. An assumed 5% expenditure increase for FY 2027/31 was used. Most
of the City’s capital improvement projects fall within the Water and Wastewater Fund. The last
utility rate study was conducted in-house in FY 2020. Due to current economic conditions and
inflation, the City is currently having an updated rate study conducted. The study is being
conducted by an independent consulting firm. New rates should be presented to the
Commission in early FY 2026/27.
Over the next five years, the total estimated cost of the utility is $105,318,986, including all
debt and operating costs, with a projected ending fund balance of $ $81,439,283. The Water
and Wastewater fund analysis includes the Water and Sewer Utility Fund, Water and Sewer
Revenue Fund, Water Impact Fees Fund and Sewer Impact Fees Funds.
The City will continue with the analysis of water and wastewater rates during FY 2026/27. The
City continues to budget for necessary funding for upcoming projects while ensuring any
adjustments to water and wastewater rates are fair and necessary to sustain the City’s utility
system. The results of the study will play a pivotal role in facilitating sustainable growth and
development, enabling the City to effectively meet the needs of its residents and businesses
in the years to come. It is anticipated that new rates will be implemented sometime during FY
2026/27.
The City contracted for a complete impact fee study in FY 25/26. Water and wastewater impact
fees were increased based on the recommendations of the study. The future revenue streams for
impact fees include the increases.
The Water and Wastewater Departments play a pivotal role in ensuring the delivery of highquality water services and responsible wastewater management to residents and businesses
alike. The City’s investment in these critical areas reflects its dedication to meeting the
demands of a growing population while maintaining a focus on environmental sustainability
and resource protection.
Water & Wastew ater Funds
Fund Balance, BOY - ACFR
$
Actual
Estim ated
Proposed
Projected
Projected
Projected
FY 24-25
FY 25-26
FY 26-27
FY 27-28
FY 28-29
FY 29-30
FY 30-31
$ 76,088,002
$ 72,981,449
$ 72,079,045
$ 73,974,622
$ 77,656,043
74,686,126
$
70,930,377
Projected
System Revenue
Combined Water
7,841,113
8,048,000
8,369,920
8,704,717
9,052,905
9,415,022
9,791,623
Combined Wastew ater
Reclaimed Water
6,476,651
-
6,620,000
-
6,884,800
-
7,160,192
-
7,446,600
-
7,744,464
-
8,054,242
-
Interest (Investment earnings)
751,276
1,052,900
1,500,000
1,545,000
1,591,350
1,639,091
1,688,263
Sew er Impact Fees
862,010
525,000
1,000,500
1,200,600
1,200,600
1,200,600
1,200,600
Water Impact Fees
256,347
150,000
305,700
354,900
354,900
354,900
354,900
Fines and Forfeitures
173,252
220,000
226,600
233,398
240,400
247,612
255,040
Contributions, Donations
Other Income
-
-
-
-
-
-
-
18,795
10,000
10,300
10,609
10,927
11,255
11,593
Transfers In
2,633,800
2,633,800
2,712,814
2,794,198
2,878,024
2,964,365
3,053,296
Total Revenue
19,013,245
19,259,700
21,010,634
22,003,614
22,775,707
23,577,308
24,409,557
Total Funding Available
93,699,371
95,347,702
93,992,083
92,933,992
94,854,752
97,551,930
102,065,600
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