Approval of the Preliminary
Fiscal Year 2025/26
Regional Water Reuse
System O&M and CIP
Budgets
1 Nick Harvey
Deputy Director - Administration
City Council
April 15, 2025
Regional Overview
• Proposed Budget
• User Agency Contribution Allocations
• CIP Review
• Remaining Budget Schedule
Annual Flow
(In Million Gallons)
Regional Operations
Increases/Reductions
• Salaries & Benefits - $1.9M
• 4% COLA + 5% Equity related to class & comp study applied Citywide • Potential re-classifications and potential additional positions • Professional Services – ($992k)
• Last year budgeted increased costs for Lystek due to uncertainty on biosolid land application • Utilities - $1.9M
• Anticipating higher electricity consumption at higher rates • Should be mitigated to some extent once new UV system is operational • Operating Debt Service – ($240K)
• Interfund loans for purchase of biosolid land application sites now paid off • Operations & Maintenance Projects - $2.5M
• Relied on carryover budget last year.
• Belt press rehab, consumables for UV disinfection, and lime for biosolid land application Regional Budget
Regional Reserves
as of June 30, 2024
7 • Operating
• $6,677,997
• Catastrophic
• $1,700,000
• Partner Agency
Refund Reserve
• $2,853,199
Miscellaneous Revenues
Fund Summary/Agency Contribution
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
• Rohnert Park - $514K
• SPCSD - $87K
• Sebastopol - $85K
• Cotati - $77K
Regional CIP 2025/26
• Plant Infrastructure - $4,695,000
• Reuse Infrastructure - $3,139,000
• Master Planning/Studies/Misc -
$4,166,000
13 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 CIP Projects
14 Regional CIP Projects
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
15 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 CIP Projects
Remaining Budget Schedule
•City Council – May 6th & 7th
•Budget Study Sessions
•City Council – June 17th
•Budget Adoption
Recommendation
It is recommended by the Board of Public Utilities, the Subregional Technical Advisory Committee, and Santa Rosa Water that the Council, by resolution, approve the Preliminary Fiscal Year 2025/26 Regional Water Reuse System Operating and Maintenance, Capital
Improvement, and Debt Service Budget and Allocation of Costs for the purpose of notifying the Regional Water Reuse User Agencies of their allocation of such costs by May 1, 2025.
QUESTIONS?
18