BPU
Budget
Subcommittee
Fiscal Year 2026/27 Water, Wastewater, Regional Reuse
and Storm Water and Creeks O&M and CIP Budgets
March 18, 2026
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 slowing somewhat
• Rates will increase per current proposed 5-year schedule (plus wholesale passthrough on the Water Usage Charge)
3 Expenditure Increases
• Salaries
• 4% Salary increases department-wide (MOU)
• No re-classification or new position requests
• Electricity
• Water Purchase
• Internal overhead up
• Operations and Maintenance Projects up in Local Wastewater, down in other funds
4 • Water Fund – 6.8%
• Wastewater Fund – 0.8%
• Regional Reuse Fund – 3%
• Storm Water and Creeks Funds – 1.1%
• $742k (22.4%) funded by General Fund
• $2.57M (77.6%) funded by Enterprise Funds
Water, Local WW, Regional Reuse and
Storm Water and Creeks O&M Increases
Water, Local WW & SW
Total Budget
2026-27
Water O&M
Water O&M
Wastewater O&M
Regional Budget
Refund Reserve History
Regional Partner Allocations FY 2026/27
Operating Fund Reserves
as of June 30, 2025
13 Water Wastewater Regional • Operating
• $6,700,112
• Catastrophic
• $5,750,000
• Undesignated
• $21,172,865
• +$5.8 mil
• Operating
• $2,000,771
• Catastrophic
• $6,800,000
• Undesignated
• $18,836,725
• +$4.1 mil
• Rate Stabilization
• $1,000,000
• Operating
• $7,075,910
• Catastrophic
• $1,700,000
• Refund Reserve
• $16,283,990
• +$7.5 mil
• Geysers
• $1,250,000
Undesignated Fund Balance – Water
FY 2025/26 Deficit Budget ($5.1M) FY 2026/27 Deficit Budget ($6.5M)
Undesignated Fund Balance – Local
Wastewater
FY 2026/27 Deficit Budget ($6.9M)FY 2025/26 Deficit Budget ($6.9M)
Storm Water and Creeks O&M
Storm Water and Creeks Enterprise Reserves
as of June 30,2025
17 1671 – Storm Water Enterprise – Undesignated $728,238 ($9,895) 1672 – Storm Water – Creek Restoration – Undesignated
$1,275,450 ($107,589)
CIP Funding
• Proposed Funding
• Water - $16 Million
• Wastewater - $14.7 Million
• Regional - $13 Million – $1 Million increase
• Storm Water and Creeks - $1,711,076
18 Water CIP 2026/27
• Master Plans/Studies/Misc - $2,247,000
• Water Mains & Services - $3,365,000
• Pump Stations & Facilities - $2,025,000
• Groundwater - $2,363,000
• Reservoirs - $6,000,000
Reservoirs
37% Water Mains &
Services
21%
Master
Plans/Studies/Misc.
14%
Groundwater
15%
Pump
Stations &
Facilities
13%
Water Year 1 (2026/2027)
$16,000,000
Local Wastewater CIP 2026/27
• Master Plans/Studies/Misc - $1,499,000
• Sewer Mains & Services - $7,541,000
• Sewer Trunks - $5,610,000
• Lift Stations & Facilities - $50,000
Sewer
Trunks
38%
Sewer Mains &
Services 51%
Master
Plans/Studies/Misc.
10%
Lift Stations
& Facilities
0%
Local Wastewater Year 1
(2026/2027)
$14,700,000
Regional CIP 2026/27
• Plant Infrastructure - $10,475,000
• Reuse Infrastructure - $975,000
• Master Planning/Studies/Misc -
$1,550,000
Plant Infrastructure 81%
Reuse
Infrastructure
8%
Master Planning/
Studies/Misc.
12%
Regional CIP Year 1 (2026/27)
$13,000,000
Storm Water CIP 2026/27
• Master Planning/Studies/Misc - $875,000
• Storm Drains - $591,076
• Creeks - $245,000
Storm
Drains
35%
Creeks
14%
Master
Plans/Studies/Misc.
51%
Storm Water & Creeks Year 1
(2026/2027)
$1,711,076
Budget Schedule
• BPU – March 19th
• O&M and CIP Study Session
• BPU – April 2nd
• Recommendation of FY 2026/27 Water, Local Wastewater, Regional Reuse and Storm Water & Creeks O&M and CIP budgets to City Council
• City Council – April 21st
• Preliminary approval of Regional Budget
• City Council – May 5th & 6th
• Budget Study Sessions
• City Council – June 16th
• Budget Adoption
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 2026/27 Water, Local Wastewater, Regional Reuse and Storm water and Creeks Enterprise operations and maintenance and capital expenditure appropriation requests