BPU
Budget
Subcommittee
Fiscal Year 2025/26 Water, Wastewater, Regional Reuse
and Storm Water and Creeks O&M and CIP Budgets
March 26, 2025
1 Nick Harvey
Deputy Director - Administration
Overview
• Water, Local Wastewater, Regional Reuse and Storm Water and Creeks Budgets
• CIP Review
• Budget Schedule
• Recommendation
Staff Assumptions
• Water deliveries projected to increase 1.1%
• Based on growth assumption consistent with financial model • Wastewater use will remain flat – sewer caps
• Development will stay stable
• Rates will increase per current schedule
3 Expenditure Increases
• 9% Salary increases department-wide
• Costs of Chemicals and Electricity
• Water Purchase
• Insurance Premiums
• Internal and external overhead
• Operations and Maintenance Projects
4 • Water Fund – 3.8%
• Wastewater Fund – 11.2%
• Regional Reuse Fund – 8.7%
• Storm Water and Creeks Funds – 1%
• $746k (22.7%) funded by General Fund
• $2.54M (77.3%) funded by Enterprise Funds
Water, Local WW, Regional Reuse and
Storm Water and Creeks O&M Increases
Water, Local WW & SW
Total Budget
2025-26
Water Operations
Purchase
of Water
8 • Growth only – No increased demand expected
Volume of water increasing by 1.1%
• 8.86%
Sonoma Water rate increase
Water O&M
Wastewater Operations
Wastewater O&M
Regional Operations
Regional Budget
Refund Reserve History
Regional Partner Allocations FY 2025/26
Bond Issuance
• Planning a $35 million bond issuance to fund the electrical infrastructure replacement at LTP
• Assumption has been built into Santa Rosa’s rate modeling as follows:
• 30-year amortization
• 5.5% interest rate
• Estimated debt service payments would be $2.61 Million per year • Estimated annual partner allocations (Same % as CIP):
• Santa Rosa - $1.847M
• RP - $514K
• SPCSD - $87K
• Sebastopol - $85K
• Cotati - $77K
Operating Fund Reserves
as of June 30, 2024
17 Undesignated Fund Balance – Water
Undesignated Fund Balance – Local
Wastewater
Storm Water and Creeks Operations
Storm Water and Creeks O&M
Storm Water and Creeks Enterprise Reserves
as of June 30,2024
22 CIP Funding
• Proposed Funding
• Water - $15.5 Million
• Wastewater - $14.3 Million
• Regional - $12,000,000 – $1 Million increase
• Storm Water and Creeks - $3,373,265
23 Water CIP 2025/26
• Master Plans/Studies/Misc - $2,597,000
• Water Mains & Services - $5,344,000
• Pump Stations & Facilities - $840,000
• Groundwater - $5,642,000
• Reservoirs - $1,077,000
Local Wastewater CIP 2025/26
• Master Plans/Studies/Misc - $1,018,000
• Sewer Mains & Services - $5,530,000
• Sewer Trunks - $1,326,000
• Lift Stations & Facilities - $6,426,000
Regional CIP 2025/26
• Plant Infrastructure - $4,695,000
• Reuse Infrastructure - $3,139,000
• Master Planning/Studies/Misc -
$4,166,000
Storm Water CIP 2025/26
• Master Planning/Studies/Misc
- $700,001
• Storm Drains - $2,138,464
• Creeks - $534,800
Document Overview
29 CIP Project Highlights
• Water Projects
• Pump Stations
• Groundwater Program
• Water Mains & Services
• Sewer Projects
• Sewer Mains & Services
• Sewer Trunk Lines
• Storm Water Projects
• McMinn Avenue Storm Drain Replacement
• Regional Projects
• Subregional Mitigation Bank Development
• Delta Pond Standby Generator and Process
Boiler Replacements
• Reclamation Valve Replacement
30 PID 1713 S13 Pump Station Upgrades
&
PID 1986 S14 Pump Station Upgrades
High Fire Severity Zones
• Install higher capacity water pumps and upgrade
electrical equipment
• PID 1713 S13 Project Estimate: $3.4M
• PID 1986 S14 Project Estimate: $3.2M
• Design: Year 1
• Construction: Year 2 & 3
Water Pump Stations
PID 2486 Conversion of Existing
Emergency Wells to Production
• Feasibility evaluation and construction
to convert existing emergency wells
into production wells
• Total Project Estimate: $4.5M
• Design: Year 1
• Construction: Year 3 or later
31 Groundwater Program
PID 0166 Meyers Drive Water
and Sewer Main Replacements
• Upsize and replace 6” water
mains and 6” to 8” sewer mains
installed in 1952
• Water Estimate: $1.7M
• Sewer Estimate: $2.2M
• Storm Drain Estimate: $25k (Design only)
• Currently in Design
• Construction: Year 1
32 Water and Sewer Main Replacements
PID 2425 Llano Trunk
Rehabilitation Phase 2
• Rehabilitate existing 60” to 66”
trunk sewer and manholes
• Total Project Estimate: $21.8M
• Design: Year 1
• Construction: Year 2 through 5
• Partnering with US Army Corp of
Engineers
33 Sewer Trunks
34 Storm Water
PID 1601 McMinn Avenue
Storm Drain Replacement
• Install new storm drain and structures
• Evaluate feasibility for large scale
Low Impact Development offsite bank
• Upsize and replace 4” to 6” water
mains and 6” sewer mains installed
in 1941 to 1964.
• Storm Water Estimate: $3M
• Water Estimate: $2.9M
• Sewer Estimate: $3.8M
• Currently in Design
• Construction: Year 1
35 PID 2046 Subregional Mitigation
Bank Development
• Creation of ~100 acre California
Tiger Salamander (CTS) and
wetland mitigation bank
• Cost Estimate: $7.1M
• Currently in Design
• Construction: Year 1
Regional
36 Regional
PID 2330 Delta Pond Standby
Generator and Process Boiler
Replacements
• Construct new emergency generator
at Delta Pond
• Replace existing boiler #1 & 2 at
the Laguna Treatment Plant
• Cost Estimate: $4.5M
• Currently in Design
• Construction: Year 1
37 PID 2446 Reclamation Valve
Replacement
• Replace valves in the Reuse
system that have reached the
end of their useful life
• Cost Estimate: $2.3M
• Design: Year 1
• Construction: Year 2
Regional
Budget Schedule
• SubTAC – April 3rd
• Regional Budget Review and Recommendation by Partner Agencies • BPU – April 3rd
• O&M and CIP Study Session
• Recommendation of FY 2025/26 Regional Reuse Budget & Allocations • City Council – April 15th
• Preliminary approval of Regional Budget
• BPU – April 17th
• Recommendation of FY 2025/26 Water, Wastewater, and Storm water and Creeks Budget • City Council – May 6th & 7th
• Budget Study Sessions
• City Council – June 17th
• Budget Adoption
DISCUSSION /
QUESTIONS?
39 Recommendation
It is recommended by Santa Rosa Water that the Board of Public Utilities Budget Review Subcommittee, by motion, recommend that the Board of Public Utilities approve the Fiscal Year 2025/26 Water, Local Wastewater, Regional Reuse and Storm water and Creeks Enterprise operations and maintenance and capital expenditure appropriation requests
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CALL: 707.543.4200
EMAIL: SRWATER@SRCITY .ORG
VISIT: SRCITY .ORG/WATER
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