REGULAR MEETING OF THE WATER AND WASTEWATER COMMISSION WEDNESDAY, JULY 29, 2026 – 5:30 P.M. AUSTIN WATER HEADQUARTERS WALLER CREEK CENTER 625 E 10TH STREET AUSTIN, TEXAS Some members of the Water and Wastewater Commission may be participating by videoconference. The meeting may be viewed online at: http://www.austintexas.gov/page/watch- atxn-live Public comment will be allowed in-person or remotely via telephone. Speakers may only register to speak on an item once either in-person or remotely and will be allowed up to three minutes to provide their comments. Registration no later than noon the day before the meeting is required for remote participation by telephone. To register to speak remotely, contact Vicky Addie, 512-972-0332, vicky.addie@austintexas.gov. CURRENT COMMISSIONERS: Chris Maxwell-Gaines, Chair (District 8) Andrew Maas (Mayor) Alex Navarro (District 2) Shwetha Pandurangi (District 6) Mike Reyes (District 4) Evan Wolstencroft (District 5) CALL TO ORDER PUBLIC COMMUNICATION: GENERAL AGENDA Marcela Tuñón, Vice Chair (District 9) Amanda Marzullo (District 3) Alex Ortiz (District 7) Jesse Penn (District 1) Shannon Trilli (District 10) Speakers signed up to speak at the meeting being called to order will each be allowed a three- minute allotment to address their concerns regarding items not posted on the agenda. APPROVAL OF MINUTES 1. Approve the minutes of the Water and Wastewater Commission regular meeting held July 15, 2026. DISCUSSION AND ACTION ITEMS 2. 3. Approve a recommendation to Council on Austin Water’s Fiscal Year 2026-2027 Proposed Operating Budget, Capital Budget, new appropriations, rates, and fees, and 5-Year Capital Improvement (CIP) spending plan. Discussion and approval of the Water and Wastewater Commission’s 2025 Annual Internal Review and Report. 4. Approve the nomination of members of the Water and Wastewater Commission to the Joint Sustainability Committee for a primary and alternate. STAFF BRIEFINGS 5. 6. 7. Staff briefing on Austin Water’s Capital Improvement Plan (CIP) spending plan annual development process - Martin Tower, Austin Water Managing Engineer Staff briefing on Austin Water’s annual staffing planning process - Allison Orton Sprigg, Austin Water Enterprise Strategic Planning Manager Staff briefing on Austin Water’s Proposed Fiscal Year 2026-2027 Operating Budget, Capital Budget, new appropriations, rates, and fees, and 5-Year Capital Improvement (CIP) spending plan - Joseph Gonzales, Deputy Director, Business Services COMMITTEE UPDATES 7. 8. Update on meetings held by the Budget Committee regarding a review of Austin Water’s Fiscal Years 2027-2031 Financial Forecast and Capital Spending Plan and FY 2026-2027 Proposed Budget – Vice Chair …
WATER AND WASTEWATER COMMISSION SPECIAL CALLED BUDGET COMMITTEE MEETING WEDNESDAY, JULY 29, 2026 – 3:30 P.M. AUSTIN WATER HEADQUARTERS WALLER CREEK CENTER 625 E 10TH STREET AUSTIN, TEXAS Some members of the Water and Wastewater Commission Budget Committee may be participating by videoconference. The meeting may be viewed online at: http://www.austintexas.gov/page/watch-atxn-live Public comment will be allowed in-person or remotely via telephone. Speakers may only register to speak on an item once either in-person or remotely and will be allowed up to three minutes to provide their comments. Registration no later than noon the day before the meeting is required for remote participation by telephone. To register to speak remotely, contact Vicky Addie, 512-972-0332, vicky.addie@austintexas.gov. CURRENT BUDGET COMMITTEE MEMBERS: Marcela Tunon, Chair (District 9) Shwetha Pandurangi (District 6) Chris Maxwell-Gaines, Vice Chair (District 8) Evan Wolstencroft (District 5) CALL TO ORDER AGENDA PUBLIC COMMUNICATION: GENERAL Speakers signed up to speak at the meeting being called to order will each be allowed a three-minute allotment to address their concerns regarding items not posted on the agenda. APPROVAL OF MINUTES 1. Approval of minutes from the July 23, 2026, Special Called Water and Wastewater Commission Budget Committee meeting. DISCUSSION AND POSSIBLE ACTION ITEMS 2. Discussion and consider approval of the Budget Committee’s Report summarizing the briefings that Austin Water finance staff gave to the Committee and the topics discussed during Budget Committee meetings held from May 2026 through July 2026, regarding Austin Water’s Financial Forecast for FY 2027-2031, Austin Water’s Proposed FY 2027-2031 Capital Spending Plan, and Austin Water’s Proposed FY 2026-2027 Budget. FUTURE AGENDA ITEMS Discussion of future agenda items ADJOURNMENT For more information on the Water and Wastewater Commission, please contact Vicky Addie at 512-972-0332 or vicky.addie@austintexas.gov. Visit the Water and Wastewater Commission website at https://www.austintexas.gov/content/water-and-wastewater-commission. The City of Austin is committed to compliance with the Americans with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. For assistance, please contact the Liaison or TTY users’ route through 711. A person may request language access accommodations no later than 48 hours before the scheduled meeting. Please call or email Vicky Addie at Austin Water, at 512-972-0332 or vicky.addie@austintexas.gov, to request service or for additional information.
WATER AND WASTEWATER COMMISSION MINUTES WEDNESDAY, JULY 15, 2026 WATER AND WASTEWATER COMMISSION REGULAR MEETING MINUTES WEDNESDAY, JULY 15, 2026 The Water and Wastewater Commission convened in a Regular meeting on Wednesday, July 15, 2026, at 625 E 10th Street in Austin, Texas. Chair Chris Maxwell-Gaines called the Water and Wastewater Commission Meeting to order at 5:39pm. Commissioners in Attendance: Chair Chris Maxwell-Gaines, Amanda Marzullo, Alex Ortiz, Evan Wolstencroft Commissioners in Attendance Remotely: Vice Chair Marcela Tuñón, Andrew Maas, Mike Reyes, Shannon Trilli PUBLIC COMMUNICATION: GENERAL None. APPROVAL OF MINUTES 1. Approve the minutes of the Water and Wastewater Commission Regular Meeting on May 20, 2026. The minutes from the Water and Wastewater Commission Regular meeting on May 20, 2026 were approved on Commissioner Marzullo’s motion, Commissioner Wolstencroft’s second on an 8-0 vote with Commissioners Navarro, Pandurangi, and Penn absent. DISCUSSION AND ACTION ITEMS Items 2, 3, 4, 5, 6, 7, 8, 11, 12, and 13 were acted on with one motion. 2. Recommend approval to authorize an amendment to a contract for continued supervisory control and data acquisition equipment, software installation, and support services for Austin Water with Control Panels USA Inc., to increase the amount by $1,000,000 for a revised total contract amount not to exceed $4,200,000. Funding: $300,000 is available in the Capital Budget of Austin Water. Funding for the remaining contract term is contingent upon available funding in future budgets. Recommended for approval on Commissioner Marzullo’s motion, Commissioner Wolstencroft’s second on an 8-0 vote with Commissioners Navarro, Pandurangi, and Penn absent. 1 WATER AND WASTEWATER COMMISSION MINUTES WEDNESDAY, JULY 15, 2026 3. 4. 5. 6. 7. Recommend approval to authorize a contract for construction services for the Central East Austin Water and Wastewater Pipeline Renewal Project for Austin Water with Underground Water Solutions, Co., in the amount of $4,067,015 plus a $406,702 contingency for a total contract amount not to exceed $4,473,717. Funding: $4,473,717 is available in the Capital Budget of Austin Water. Recommended for approval on Commissioner Marzullo’s motion, Commissioner Wolstencroft’s second on an 8-0 vote with Commissioners Navarro, Pandurangi, and Penn absent. Recommend approval to authorize a contract for construction services for the Elmhurst Drive Wastewater Pipe Renewal Project for Austin Water with HEI Civil Texas, LLC, in the amount of $4,784,754 plus a $478,476 contingency for a total contract amount not to exceed $5,263,300. Funding: $5,263,300 is available in the Capital Budget of …
WATER AND WASTEWATER COMMISSION BUDGET COMMITTEE MINUTES WEDNESDAY, JULY 23, 2026 WATER AND WASTEWATER COMMISSION BUDGET COMMITTEE REGULAR MEETING MINUTES WEDNESDAY, JULY 23, 2026 The Water and Wastewater Commission Budget Committee convened in a regular meeting on Wednesday, July 23, 2026, at 625 E 10th Street in Austin, Texas. Budget Committee Members in Attendance: Committee Chair Marcela Tuñón, Committee Vice Chair Chris Maxwell-Gaines, and Commissioner Evan Wolstencroft Budget Committee Members Absent: Commissioner Shwetha Pandurangi Chair Tuñón called the Water and Wastewater Commission Budget Committee to order at 3:05 p.m. PUBLIC COMMUNICATION: GENERAL None. APPROVAL OF MINUTES 1. Approval of minutes from the June 11, 2026 Water and Wastewater Commission Budget Committee meeting. The minutes from the Water and Wastewater Commission Budget Committee regular meeting on June 11, 2026 were approved on Vice Chair Maxwell-Gaines’ motion, Commissioner Wolstencroft’s second on a 3-0 vote. DISCUSSION ITEMS 2. Austin Water’s Proposed FY 2026-2027 Budget Update The update was provided by Austin Water Acting Assistant Director Christina Romero and Austin Water Deputy Director Joseph Gonzales. 3. Austin Water’s Proposed FY 2026-2027 through FY 2030-2031 Capital Spending Plan Update The update was provided by Austin Water Infrastructure Management Division Manager Martin Tower. DISCUSSION AND POSSIBLE ACTION ITEMS 4. Discussion and consider approval of the Budget Committee’s Report This item was withdrawn due to an insufficient posting description of this report. FUTURE AGENDA ITEMS Chair Tuñón announced that the Budget Committee will hold an additional meeting on July 29, 2026 at 3:30pm to review the Budget Committee’s report. Chair Tuñón adjourned the meeting at 3:56 p.m. without objection. 1
Capital Improvements Program Planning Martin Tower, P.E. Infrastructure Management Water & Wastewater Commission July 29, 2026 Austin Water Assets At A Glance More than 3,800 miles of water mains More than 2,900 miles of wastewater mains 3 water treatment plants 2 wastewater treatment plants 1 biosolids management plant 44 pump stations for water system 38 water reservoirs 142 wastewater lift stations Nearly 31,000 fire hydrants 20 campuses and 63 buildings Nearly 1,000 fleet vehicles and operational equipment Information technology 44,000 acres of managed wildlands 2 Capital Improvements Plan Development Annual process Built from zero, based on business cases Asset management data drives renewal funding levels ~600 projects are reviewed and validated each year Led by program area leaders and staff who identify: Asset risks and renewal needs Opportunities for enhancement and innovation Requirements for expanded capacity Reviewed and approved by executives who base approvals on: Managing risk to reliability and performance Affordability for customers AW CIP Business Case Example 3 Collaborative and Coordinated Planning Feedback from City departments and external agencies enable: Opportunities for Cooperation Reduced disturbance from construction Cost Efficiencies Purposeful and strategically aligned with: City of Austin Strategic Plan Austin Water Strategic Plan Austin Water Facility Plan Water Forward Imagine Austin 4 5-Year Plans for Generational Investments KEY EXAMPLES Walnut Creek Wastewater Treatment Plant Expansion Reclaimed Water System Improvements Williamson Creek Wastewater Interceptor Ullrich WTP Inherently Safer Disinfection Southwest Parkway Elevated Storage Tank 5 FY27-31 Capital Investment Portfolio Changes from Last Year’s 5YR Plan 358 projects worth $2.67B (97.3%) carried forward 114 Subprojects not carried forward totaling $73M (2.7%) 156 New subprojects totaling $150M (4.7%) Walnut Creek WWTP investments budget increased by $640M to $1.4B as bulk of project spending enters 5-year planning period Aquifer Storage & Recovery reduced $225M to $25M focusing on piloting $3.2B 6 Questions? Water & Wastewater Commission July 29, 2026
Austin Water Staffing Planning Water & Wastewater Commission | July 29, 2026 Austin Water Staffing Planning Annual Cycle Developed in Q1 of each Fiscal Year (FY) Two FYs submitted to City Budget Plan Full-time employees (FTEs) Temporary and contractor conversions Overtime reduction Robust Process Data Informed Collaborative – Vertical & Horizontal Repeatable Aligned & prioritized to Austin Water & Citywide Strategic Goals 2 Planning Cycle Q4: July - September Q2: January - March Q4: July - September Goals & Priorities Align Projects Enter Staffing Requests Budget Approval Finance Review Budget Forecast HR Recruitment Prep Goals & Priorities Align Projects Enter Staffing Requests Budget Approval Q1: October - December Position Requests Visualizations Forecasting 5-Year Plan HR Title Review Q3: April - June Budget Development 3 Connecting Resources & Priorities Process Improvements 2020 - Staffing System 2022 - Historical Data & Growth Rates 2024 - Position Types Temporary/Contractor Conversions 2025 - 5-Year Rolling Forecast Visualizations & Dashboard Maintain & Enhance Performance 2026 - Aligning Strategic Goals & Projects Austin Water Strategic Plan Annual Work Plans Collaboration Human Resources Titles, Job Descriptions, Hiring Finance Budget Impact 4 Staffing Planning – Current Process 1 2 3 4 5 Goals & Priorities Goals & Priorities • AW Strategic Plan • AW Strategic Plan • Citywide Strategic Plan • Citywide Strategic Plan Program Area Program Area Planning Planning • Maintain Performance • Maintain Performance • Enhance Performance • Enhance Performance Request Positions Request Positions Visualization Visualization Forecasting • AW Staffing System • AW Staffing System collects data needed collects data needed for City budget process for City budget process • 5-year Organizational • 5-year Organizational and Program Area and Program Area Dashboards Dashboards • Comprehensive 5-year plan 5 1) Goals & Priorities Plan Alignment City of Austin Imagine Austin Citywide Strategic Plan Austin Water Strategic Plan 7 Citywide x Austin Water CITYWIDE STRATEGIC PRIORITIES COMMUNITY HEALTH & SUSTAINABILITY ECONOMIC & WORKFORCE DEVELOPMENT EQUITABLE SERVICE DELIVERY HOMELESSNESS & HOUSING MOBILITY & CRITICAL INFRASTRUCTURE HIGH-PERFORMING GOVERNMENT PUBLIC SAFETY CH.3 CH.4 EW.1 ES.3 HH.1 MC.4 MC.5 HG.2 HG.3 PS.3 Service Excellence Community Trust Community Trust Community Trust Community Trust Proactive Infrastructure Proactive Infrastructure Next Level Thriving Team Proactive Infrastructure Citywide Strategic Plan | Performance ATX 8 Austin Water Strategic Goals Thriving …
Proposed Budget 2027 Austin Water | July 29, 2026 AGENDA FY 2027 Proposed Budget Overview Sources and Uses of Funds Capital Improvement Plan Debt Management Minimizing Bill Impacts Ongoing Budget Considerations 2 FY 2027 Proposed Budget Overview Austin Water Budget Overview & Highlights 2024 Cost of Service Study Rate design for equitable cost recovery by customer class Rates for water and wastewater services are self-sustaining Public Involvement Committee (PIC) reviewed methodology and provided input Extensive community engagement Austin Water and Community Priorities Phased rate increases FY 2025-2030 Prioritize affordability while investing in resiliency and reliability Strong financial health and stable bond ratings, with industry-leading debt management strategies FY 2027 Rate Impacts Proposed average monthly residential bill increase of $7.76 per month Customer Assistance Program average monthly bill increase of $6.96 per month 4 Fund Summary DESCRIPTION FY26 AMENDED BUDGET FY26 ESTIMATED FY27 PROPOSED BUDGET Beginning Fund Balance $289.0 $284.4 $288.1 Revenue & Transfers In $829.3 $840.3 $883.1 Expenditures & Transfers Out $863.9 $836.7 $899.8 Change in Fund Balance ($34.6) $3.6 ($16.8) Ending Fund Balance $254.4 $288.1 $271.3 FTEs 1,439 1,439 1,482 5 SOURCES & USES OF FUNDS 6 6 Sources of Funds Department Service Revenue: FY 2026 Amended: $761.8 million FY 2027 Proposed: $816.1 million $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 $390.4 $367.2 $398.4 $369.3 $3.6 $3.7 Water Services Wastewater Services Reclaimed Water Services FY26 Amended FY27 Proposed $21.7 $23.6 Miscellaneous Revenue 7 Uses of Funds Department Expenditures: FY 2026 Amended: $863.9 million FY 2027 Proposed: $899.8 million $400 $350 $300 $250 $200 $150 $100 $50 $0 $348.4 $358.6 $281.3 $293.1 $197.0 $208.8 $37.2 $39.3 Program Requirements Other Requirements Debt Service Transfers FY26 Amended FY27 Proposed 8 Significant Requirement Changes (in millions) Wages and Benefits Contractuals and Commodities • $4.3M increase for City-wide wage adjustment • $2.4M increase for City-wide market study adjustment • $1.2M increase for employee health insurance cost • $5.1M increase for 44 new FTEs • $2.4M increase for street cut repairs • ($1.1M) decrease for water conservation advertising campaigns • • • ($1.3M) decrease for water conservation commercial incentives ($2.1M) decrease for consultant contracts and other services ($7.4M) decrease for budget utilization adjustment Utility Billing System Support Capital Related Costs • ($0.6M) decrease • $11.8M increase in debt service requirement • $18.7M increase in CIP cash financing targets 9 Transfer …
WATER & WASTEWATER COMMISSION BUDGET COMMITTEE REPORT Overview The Committee appreciates the opportunity to review Austin Water’s FY 2027-2031 Financial Forecast and Budget material and provide the following summary to the Water and Wastewater Commission. Budget Committee Members: Marcela Tuñón, Chair (District 9) Christopher Maxwell-Gaines, Vice Chair (District 8) Shwetha Pandurangi (District 6) Evan Wolstencroft (District 5) Budget Review Executive Summary Austin Water’s Acting Assistant Director of Financial Services, Christina Romero, and staff presented an update on Austin Water’s five-year financial forecast for FY27 - FY31. Staff also provided a recap of the 2024 cost of service study, which included revenue and rate projections, debt service management, and an overview of Austin Water’s Proposed FY 2026-2031 Capital Spending Plan and the Proposed FY 2026-2027 Budget. These items are highlighted below: 1) Enterprise Resiliency - Austin Water (AW) continues to focus on enhancing emergency preparedness and responsiveness, developing operational resiliency for a range of emergency conditions, and identifying and addressing natural hazards resulting from climate change. This is reflected in additional 44 FTE’s for FY27 to cover various strategic goals. 2) Key financial performance indicators • Operating Budget – FY2026 is estimated at $836.7 M, FY2027 proposed budget is $899.8 M. • Debt Coverage – FY2026 is estimated to be 2.22, FY2027 is forecasted to be 1.98, above AW’s financial policy target of 1.75. • Days Cash on Hand - FY2026 estimated to be 274 days, FY 2027 is forecasted to be 260 days, above AW’s goal of 245 days. • % Cash for CIP Spending – FY 2026 is estimated to be 36% at the current financial policy, and FY 2027 is forecasted to be 23.2% at a weighted average. The updated FY 2027 financial policy: 20% is desirable for generational projects and 35-50% for all other projects, resulting in a blended financial policy target of 29.9%. 3) Debt Management • The Utility continues to use capital recovery fees (CRF) for debt defeasance with $30 M debt defeasance FY 2027. • CRFs are declining and net revenue for FY25 was $29.5 M, and net revenue as of June 2026 was $17.0 M. • Other funding opportunities currently being utilized by AW include: o TWDB Low-interest loans to date of $363.6 M. o Second loan closing $5M of the total $45M SWIFT Polybutylene loan in November 2026 o $59M CWSRF loan for Walnut Creek WWTP Expansion to 100 MGD closed May …
WATER & WASTEWATER COMMISSION BUDGET COMMITTEE REPORT Overview The Committee appreciates the opportunity to review Austin Water’s FY 2027-2031 Financial Forecast and Budget material and provide the following summary to the Water and Wastewater Commission. Budget Committee Members: Marcela Tuñón, Chair (District 9) Christopher Maxwell-Gaines, Vice Chair (District 8) Shwetha Pandurangi (District 6) Evan Wolstencroft (District 5) Budget Review Executive Summary Austin Water’s Acting Assistant Director of Financial Services, Christina Romero, and staff presented an update on Austin Water’s five-year financial forecast for FY27 - FY31. Staff also provided a recap of the 2024 cost of service study, which included revenue and rate projections, debt service management, and an overview of Austin Water’s Proposed FY 2026-2031 Capital Spending Plan and the Proposed FY 2026-2027 Budget. These items are highlighted below: 1) Enterprise Resiliency - Austin Water (AW) continues to focus on enhancing emergency preparedness and responsiveness, developing operational resiliency for a range of emergency conditions, and identifying and addressing natural hazards resulting from climate change. This is reflected in additional 44 FTE’s for FY27 to cover various strategic goals. 2) Key financial performance indicators • Operating Budget – FY2026 is estimated at $836.7 M, FY2027 proposed budget is $899.8 M. • Debt Coverage – FY2026 is estimated to be 2.22, FY2027 is forecasted to be 1.98, above AW’s financial policy target of 1.75. • Days Cash on Hand - FY2026 estimated to be 274 days, FY 2027 is forecasted to be 260 days, above AW’s goal of 245 days. • % Cash for CIP Spending – FY 2026 is estimated to be 36% at the current financial policy, and FY 2027 is forecasted to be 23.2% at a weighted average. The updated FY 2027 financial policy: 20% is desirable for generational projects and 35-50% for all other projects, resulting in a blended financial policy target of 29.9%. 3) Debt Management • The Utility continues to use capital recovery fees (CRF) for debt defeasance with $30 M debt defeasance FY 2027. • CRFs are declining and net revenue for FY25 was $29.5 M, and net revenue as of June 2026 was $17.0 M. • Other funding opportunities currently being utilized by AW include: o TWDB Low-interest loans to date of $363.6 M. o Second loan closing $5M of the total $45M SWIFT Polybutylene loan in November 2026 o $59M CWSRF loan for Walnut Creek WWTP Expansion to 100 MGD closed May …
RECOMMENDATION TO COUNCIL WATER AND WASTEWATER COMMISSION 20260729 -002: Recommendation to Council on Austin Water’s Fiscal Year 2026-2027 Budget Date of Approval: July 29, 2026 Recommendation The Water and Wastewater Commission recommends approval of Austin Water’s Fiscal Year 2026- 2027 Proposed Operating Budget, Capital Budget, new appropriations, rates, and fees, and 5-Year Capital Improvement (CIP) spending plan. Description of Recommendation to Council Austin Water maintains a stable financial outlook. This outlook is supported by strong bond ratings, including Moody’s recent upgrade to Aa1, as well as a five-year forecast that complies with Council-approved financial policies. A key exception to these policies is reduced cash financing for major generational projects, such as the Walnut Creek Wastewater Treatment Plant expansion, where debt financing allows future customers to share the cost of large capital improvements from which they will benefit. The Budget Committee recommends approval of the proposed FY 2027 Austin Water budget. In support of that recommendation, the Committee encourages future budget processes to continue prioritizing outreach and education to Austin Water customers about water conservation. Before Austin Water decreases program funding for outreach and education about conservation, other cost-reduction strategies should be evaluated. Although recent rainfall and flooding have improved water supply conditions, demand-side strategies like conservation must remain a core component of Austin Water’s approach alongside Water Forward supply-side efforts, such as Indirect Potable Reuse and Aquifer Storage and Recovery, as Austin prepares for continued growth, climate variability, and future drought conditions. Motioned By: Commissioner Alex Navarro Seconded By: Commissioner Jesse Penn Vote: 9-0 For: Chair Chris Maxwell-Gaines, Vice Chair Marcela Tuñón, Commissioners Amanda Marzullo, Alex Navarro, Alex Ortiz, Jesse Penn, Mike Reyes, Shannon Trilli, and Evan Wolstencroft. Against: None Abstain: None Absent: Commissioners Andrew Maas and Shwetha Pandurangi Attest: Vicky Addie, Water and Wastewater Commission Liaison Vicky Addie
