FY27 Proposed Budget

Water Fund

The Water Fund accounts the City’s water utility operations including the operation of a water production plant, water storage facilities, water distribution system, water meter reading, and water quality monitoring. The business-like fund is primarily supported through user fees.

Fund Balance:

The Water F und’s unassigned fund balance at the close of fiscal year 2025 was $11,286,042 or $1,940,184 higher than fiscal year 2024. The increase in unassigned fund balance in fiscal year 2025 is due mainly to a decrease in debt payments and a reduction in the debt service reserve.

(1) FY26 - FY28 figures are estimates.

The revised fiscal year 2026 unassigned fund balance is estimated to decrease to $9,373,350, a decrease of $1,912,692 over fiscal year 2025. This is primarily due to transfers to capital reserves.

Fiscal year 2027 unassigned fund balance is anticipated to decrease by $220,600 over revised fiscal year 2026. This is primarily due to transfers to capital reserves.

The Water Fund maintains two reserved funds: one restricted fund for debt service and one assigned fund for capital reserves. The debt service reserve will have an estimated $0 in restricted fund balance, and the capital reserve is estimated to have $1,710,843 in assigned fund balance at the end of fiscal year 2027. Contributions into the Capital Reserve increased to $1,800,000 in fiscal year 2023 and are planned to increase to $4,800,000 in fiscal year 2026 and $3,000,000 in fiscal year 2027.

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