PACKET 2026 6 8 Work Session website

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Water Division Summary 
 
 
Similar to the power division, we have projected large increases in capital project expenditures 
for the water division.    
 
There are three very large capital projects for the water division scope of work.  The largest FY 
2027 capital project is the proposed construction of Reservoir 6 ($6.5 million) to address water 
issues in the Mt. Verd Industrial Park and the Highway 305 area.  Likewise, AMI expenditures 
($720,000) and Matlock Phase 1 – Madison to Crestway ($1.3 million) are all significant 
capital investments.  We would anticipate bond issues to be at least $6.5 million to cover the 
new reservoir. We have also included projects to replace a trailer, truck #88, and to continue 
system rehabilitation, water line extensions, and water line services.  
 
Fleet and expenditures for the water division are marginally less than last year. The 
replacement of a single-axle dump truck and truck #88. Fleet expenditures for the water 
division are projected to be $260,000.  
 
This year, we project total revenues to be consistent with prior fiscal year end. However, we 
anticipate a decrease in budgeted net revenues from a projected $724,510 for FY 2026 
compared to the FY 2027 budget of $296,364.    
 
The primary concern from a financial standpoint is the need for increased debt in order to meet 
our capital investment needs.   This debt will result in higher debt service and interest 
payments that may, along with inflationary pressures on all fronts, lead to a need to increase 
rates over the 5-year planning period.