FY 2026 Adopted Budget - Flipbook - Page 24
beginning fund balance of $22,739,700. The budget includes total expenses of $16,122,944 as well
as the required 90-day operating reserves of $3,961,077, leaving a remaining fund balance
of $22,739,700 (Water & Wastewater Summary, page 2. This will allow the City to continue with
on-going capital improvement and infrastructure needs. Revenue sources include water
and wastewater sales, reclaimed water sales, and water and sewer sales to RedTail and Sorrento
Springs. The fund has operating expenses of $9,975,220 and non-operating expenses of
$6,147,724 which includes capital items, inter-fund transfers, general liability and property
insurance, and debt service (Water & Wastewater Expenses, page 27).
The Water and Sewer Fund includes the Director of Public Works for Utilities, the Water
Superintendent, Utility Supervisor and several utility operators and maintenance workers. There
are 23 positions in Water, 22 in Wastewater, and 23 in Utility Administration which includes
Customer Service and meter reading services.
During FY 2024/25 the City contracted for a new five-year rate study, which is currently underway
as of this writing. The study is being performed to ensure that the City maintains sufficient rates to
cover normal operations, renewal and replacement of infrastructure needs, adequate expansion of
the system to accommodate growth, and protection to bondholders to make necessary debt
payments. New water and wastewater rates went into effect in August 2025, based on historical data
The new rates may be adjusted upon the results of the rate study.
According to the FY2024 Annual Comprehensive Financial Report, the City’s Water and
Wastewater Utility provides the following services:
¾
¾
¾
¾
¾
Water service to approximately 12,527 customers, supplying over 3.50 million gallons of water
per day
Maintenance and repair of 341+ miles of water main
Maintenance and repair of 121 miles of sanitary sewer lines
Over 12,892 monthly bills for various services
Over 16,316 water/sewer meters read per month
Stormwater Fund Budget Analysis
Stormwater utility fees provide the major source of funding for the Stormwater Utility Fund. Other
minimal revenue sources include interest earnings. The estimated beginning fund balance is
$514,746. Budgeted revenue for FY 2025/26 is $934,000. Operating expenditures are budgeted at
$1,519,748, leaving a fund balance of ($71,002). The fund is required to have a required reserve
of $333,427 (Stormwater Summary, page 26).
The Stormwater Fund includes four full-time employees and is responsible for street sweeping and
drainage maintenance. The Stormwater Fund transfers $260,000 to the Street Improvement Fund
and $74,000 to General Fund for a total of interfund transfers of $334,000 (Stormwater Summary,
page 268).
In the upcoming year the City will include a recommendation for utilizing automatic increases to
the stormwater rates. The stormwater rates are currently under evaluation, along with the rate
study for the impact fees. It has been over a decade since stormwater rates have increased. Current
monthly rates are $6 for residential and $12 for commercial consumers. This fund is unsustainable
with current rates.
Additional Points of Interest
The budget includes several programs that the City maintains by policy for the benefit of the
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