The primary focus of the meeting was the initial review of the proposed fiscal year 2027 water, sewer, and storm water rates. Discussion centered around the current rates and the updates made to the water model, which now included actual expenses from fiscal year 2025 and revised consumption figures. Members noted the last approved increases were 2% for water and 2.5% for sewer rates in fiscal year 2026.

A significant portion of the discussion revolved around the use of retained earnings and settlement funds from class action lawsuits involving DuPont and 3M. The settlements had resulted in approximately $1.8 million in funds, which members recommended be used for media replacements to alleviate pressure on ratepayer bills. The media replacement costs, recognized as recurring expenses, would typically impact consumers directly; however, using the settlement funds would help offset these costs.

Further financial details revealed a substantial amount of retained earnings in the water fund, amounting to $4,516,388, which had decreased due to previous budgeting decisions. The committee considered using between $250,000 and $500,000 of retained earnings to provide a buffer against potential consumption issues and maintain a stable rate increase. The financial model projected a 2% increase for fiscal year 2027, with consumption levels expected to return to normal.

The conversation also highlighted the importance of having an editable spreadsheet to visualize different scenarios regarding retained earnings and rate increases. A proposal was made to explore various options, including a 1.5% increase alongside a $500,000 draw from retained earnings. Members emphasized the need for clarity on the financial implications of proposed capital projects and their funding sources.

As the meeting progressed, discussion shifted to sewer-related financial matters. It was noted that a 2.5% increase in sewer capital funding had been previously approved, with funds allocated for inflow and infiltration repairs, vehicle replacements, and rehabilitation of tertiary filter tanks. Members discussed upgrades to the wastewater treatment plant, initially projected for fiscal year 2028, but potentially delayed to fiscal year 2029. The retained earnings for sewer were reported as approximately $4.89 million.

The committee deliberated on whether to maintain the 2.5% increase or lower it to 2%, potentially using retained earnings to cover some expenses. A cautious approach was suggested, budgeting $150,000 from retained earnings to ensure financial stability amid potential external pressures. The importance of proactive budget management was underscored, particularly regarding healthcare costs and other uncontrollable factors.

Capital projects were briefly touched upon, with the current fiscal year appearing relatively standard without major financial burdens like those seen in the water department. Members anticipated a more stable revenue stream in fiscal year 2027, projecting earnings between $67,000 and $70,000. It was confirmed that there would be no significant capital items for culvert improvements in fiscal year 2027, though routine storm drain upgrades would continue.