Item 15 - Austin Water FY 25-26 Proposed Budget Pages — original pdf

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AUSTIN WATER Engineering and Technical Services Engineering and Technical Services Delivers engineering project management and technical support for Delivers engineering project management and technical support for water treatment facilities, as well as water distribution and wastewater water facilities, as well as water distribution and treatment collection systems. wastewater collection systems. Core Services Water and wastewater facility engineering; infrastructure engineering; pipeline engineering; regulatory compliance; pipeline capital project delivery; technical services support Expense Category Personnel Contractuals Commodities Indirect Costs Expense Refunds Non-CIP Capital 2023-24 Actual 2024-25 Estimate 2024-25 Amended 2025-26 Proposed 2026-27 Planned 13,926,972 20,815,796 20,719,402 22,861,719 23,781,389 6,511,103 6,971,051 7,970,299 8,085,945 8,338,237 1,392,314 1,465,049 1,689,003 2,310,945 2,363,121 948,389 0 0 0 0 (3,494,341) (1,949,886) (2,071,647) (2,167,588) (2,167,588) 0 0 0 0 0 Total Program Budget 19,284,438 27,302,010 28,307,057 31,091,021 32,315,159 Personnel Civilian FTEs 94.00 148.00 148.00 148.00 150.00 2025-26 Proposed Budget, Austin, TX214AUSTIN WATER Environmental, Planning, and Development Services Environmental, Development Services Planning, and Provides strategic resource and infrastructure planning, environmental Provides strategic resource and infrastructure planning, environmental stewardship, and supports Austin Water's mission to deliver save, stewardship, and supports Austin Water's mission to deliver save, affordable, sustainable, and reliable water and wastewater services. affordable, sustainable, and reliable water and wastewater services. Core Services Expense Category Personnel Contractuals Commodities Indirect Costs Expense Refunds Non-CIP Capital System capacity and infrastructure analysis; engineering review, improvement planning; permitting, and development support; capital asset management; and efficiency sustainability promotion support; water estate real 2023-24 Actual 2024-25 Estimate 2024-25 Amended 2025-26 Proposed 2026-27 Planned 17,903,817 17,495,093 17,460,693 19,776,870 18,805,810 4,616,125 8,017,191 9,973,513 9,912,450 10,246,684 368,988 21,034 396,776 678,327 423,535 444,184 0 0 0 0 (215,175) (745,591) (700,434) (895,397) (895,397) 56,011 50,000 180,000 50,000 50,000 Total Program Budget 22,750,799 25,213,469 27,592,099 29,267,458 28,651,281 Personnel Civilian FTEs 137.00 137.00 137.00 141.00 147.00 2025-26 Proposed Budget, Austin, TX215Operations Operations Core Services Expense Category Personnel Contractuals Commodities Indirect Costs Expense Refunds Non-CIP Capital AUSTIN WATER Provides reliable and sustainable operations, maintenance, and reliable and sustainable operations, maintenance, and Provides regulatory support for drinking water, wastewater, reclaimed water, and regulatory support for drinking water, wastewater, reclaimed water, biosolids infrastructure. and biosolids infrastructure. Water and wastewater facility operations and maintenance; collection and distribution systems maintenance; emergency response, customer service, and preventive maintenance support; laboratory services; environmental protection 2023-24 Actual 2024-25 Estimate 2024-25 Amended 2025-26 Proposed 2026-27 Planned 92,546,270 81,638,628 81,579,281 83,943,514 87,414,092 52,526,488 52,009,335 52,400,769 54,290,045 57,347,987 40,982,917 44,541,537 41,600,053 45,596,141 48,742,698 583,592 0 0 0 0 (2,620,002) (1,545,264) (1,581,648) (1,315,697) (1,315,697) 1,775,705 1,743,205 1,519,205 981,151 981,151 Total Program Budget 185,794,970 178,387,441 175,517,660 183,495,154 193,170,231 Personnel Civilian FTEs Other Utility Program Requirements Other Utility Program Requirements 795.00 718.00 718.00 668.00 681.00 Utility-wide expenditures, including debt administration, insurance, legal insurance, services, and bad debt, ensuring proper financial reporting. Utility-wide expenditures, legal services, and bad debt, ensuring proper financial reporting. including debt administration, Core Services Accounting and tracking of uncollectible accounts (bad debt); accounting and tracking of debt recovery services commission; interest accruals management; financial services Expense Category Personnel Contractuals Commodities Expense Refunds Non-CIP Capital 2023-24 Actual 2024-25 Estimate 2024-25 Amended 2025-26 Proposed 2026-27 Planned 0 0 8,210 460,832 (1,813,566) 8,190,097 10,030,836 13,563,511 11,652,433 12,251,073 2,016,877 2,014,803 1,512,042 3,845,743 3,944,492 0 699,483 0 0 0 0 0 0 0 0 Total Program Budget 10,906,457 12,045,639 15,083,763 15,959,008 14,381,999 2025-26 Proposed Budget, Austin, TX216Reclaimed Water Services Reclaimed Water Services Core Services AUSTIN WATER planning, Provides administrative, reclaimed water program. Provides planning, engineering, project delivery, management, delivery, management, the administrative, regulatory, and technical support services for the reclaimed water program. project regulatory, and technical support services for engineering, Reclaimed water distribution system management, operations, and maintenance; planning, design, and implementation of capital projects; interest accrual and commissions management Expense Category Personnel Contractuals Commodities Expense Refunds Non-CIP Capital 2023-24 Actual 2024-25 Estimate 2024-25 Amended 2025-26 Proposed 763,515 732,235 732,235 758,647 65,558 23,949 80,558 74,679 78,923 49,347 115,912 105,256 2026-27 Planned 744,880 113,966 124,829 (98,360) (121,648) (56,841) (117,311) (117,311) 0 0 0 0 0 Total Program Budget 754,661 765,824 803,664 862,504 866,364 Personnel Civilian FTEs 5.00 5.00 5.00 5.00 5.00 2025-26 Proposed Budget, Austin, TX217Support Services Support Services Core Services Expense Category Personnel Contractuals Commodities Indirect Costs Expense Refunds Non-CIP Capital AUSTIN WATER Provides administrative and managerial support to the Department. Provides administrative and managerial support to the Department. Administration financial management; human resources; information technology support; facility maintenance and management; information; public 2023-24 Actual 2024-25 Estimate 2024-25 Amended 2025-26 Proposed 2026-27 Planned 30,953,158 33,439,846 33,814,730 40,960,746 44,101,674 14,579,096 17,727,600 17,259,400 17,847,663 18,386,213 2,007,884 3,039,980 2,191,645 2,525,714 2,594,121 7,902 0 0 0 0 (465,271) (752,080) (560,000) (751,294) (751,294) 184 64,000 32,000 0 0 Total Program Budget 47,082,953 53,519,346 52,737,775 60,582,829 64,330,714 Personnel Civilian FTEs Transfers, Debt Service, and Other Requirements Transfers, Debt Service, and Other Requirements Core Services 235.00 281.00 281.00 311.00 325.00 Transfers and other departmental requirements at the fund or agency Transfers and other departmental requirements at the fund or agency level. level. City-wide information technology and administrative support; transfers transfers for for planned infrastructure projects and debt service; planned vehicle purchases; City-wide contributions to shared employee benefits Expense Category 2023-24 Actual 2024-25 Estimate 2024-25 Amended 2025-26 Proposed 2026-27 Planned Personnel Contractuals Commodities Transfers 8,731,740 12,236,433 12,236,433 13,419,649 19,181,614 55,938,068 58,827,587 59,973,855 61,063,982 63,964,603 0 0 0 0 0 379,251,453 403,425,446 410,258,343 458,534,230 504,875,354 Total Program Budget 443,921,260 474,489,466 482,468,631 533,017,861 588,021,571 2025-26 Proposed Budget, Austin, TX218AUSTIN WATER SIGNIFICANT CHANGES Austin Water Operating Funds Revenue Changes FY26 Proposed Dollars FY27 Planned Dollars Increase in Wastewater Service Revenue due to customer growth projections and proposed rate increases. $44,638,039 $31,764,883 Increase in Wastewater Service Revenue due to customer growth projections and proposed rate increases. $15,269,887 $26,638,922 Increase in transfer from Community Benefit Charge to the Water Operating Fund for GoPurple Water Conservation Incentives. $2,573,626 $81,146 Decrease in Wastewater Miscellaneous revenue primarily due to decreased interest income. ($1,361,959) $114,185 Decrease in Water Miscellaneous revenue primarily due to decreased interest income. ($1,593,966) $156,736 Expenditure Changes by Operating Program Operations Increase in funding to reflect cost escalation of chemicals for water treatment. FY26 Proposed FTEs FY26 Proposed Dollars FY27 Planned FTEs FY27 Planned Dollars $2,213,890 $2,215,416 Decrease in Personnel Savings due to reduced vacancy rates. $1,070,512 $1,302,322 Funding for eleven new positions in Operations in FY26 and thirteen new positions in FY27 to replace temporary employees and to increase operational shift coverage. 11.00 $1,168,000 13.00 $1,351,262 2025-26 Proposed Budget, Austin, TX219Expenditure Changes by Operating Program FY26 Proposed FTEs FY26 Proposed Dollars FY27 Planned FTEs FY27 Planned Dollars Operations Transfer one position to Austin Human Resources (AHR). (1.00) ($103,917) Support Services Funding for twelve new positions in FY26 and fourteen new positions in FY27 to support operations, employee development, and IT technical support. 12.00 $1,361,918 14.00 $1,683,975 Transfer one position to AHR. (1.00) ($103,917) Engineering and Technical Services Funding for two new positions in FY27 to provide engineering and maintenance support at all water and wastewater facilities. Customer Experience Increase in contractual services for meter accuracy testing services to meet Austin Water (AW) goal of testing 2,950 large meters annually and for creative consulting services to execute a high-impact water conservation campaign. Funding for four new positions in FY26 and six new positions in FY27 to support the key accounts, the advanced metering system, and to provide direct Customer Service. Environmental, Planning, and Development Services Funding for four new positions for FY26 and six for FY27 to facilitate AW's Mobility and Public Project Plan, Water Forward strategy's Landscape Transformation Ordinance, and the Aquifer Storage and Recovery project. 2.00 $240,568 $1,375,038 $1,287,427 4.00 $476,594 6.00 $721,703 4.00 $500,134 6.00 $721,704 Other Utility Program Requirements Increase for commercial paper administrative expense. $1,368,800 $291,118 Increase for AW brand transition cost. $958,526 ($300,000) Debt Service Requirements Incremental increase in debt service payments. $18,558,850 $25,300,915 Transfers Out Increase transfer out to Wastewater CIP Fund for pay-as-you-go financing for Wastewater capital projects. $29,851,000 $350,000 Increase in the transfer to the General Fund. $2,451,048 $3,208,401 Increase transfer out to Water CIP Fund for pay-as-you-go financing for Water capital projects. $651,000 $16,480,000 2025-26 Proposed Budget, Austin, TX220Expenditure Changes by Operating Program Transfers Out Incremental change in transfer out to Reclaimed Water CIP Fund for pay-as-you-go financing for Water capital projects. FY26 Proposed FTEs FY26 Proposed Dollars FY27 Planned FTEs FY27 Planned Dollars ($343,483) $254,311 Decrease in the transfer out from the Department's three main operating funds for debt defeasance. ($8,000,000) $0 Austin Water Community Benefit Charge Fund Revenue Changes Increase in revenue from the GoPurple Community Benefit Charge to align with actual collections received from the new charge. Expenditure Changes by Operating Program Transfers Out Increase in transfers to the Water, Wastewater, and Reclaimed Operating Funds. FY26 Proposed Dollars FY27 Planned Dollars $6,591,842 $267,738 FY26 Proposed FTEs FY26 Proposed Dollars FY27 Planned FTEs FY27 Planned Dollars $4,558,764 $552,927 Note1: Values represent annual incremental differences from the prior year. Note2: City-wide cost drivers related to wages and benefits are highlighted in the Budget In Brief section of this document. 2025-26 Proposed Budget, Austin, TX221AUSTIN WATER Capital Budget by Program Buildings and Improvements Activities related to the construction of new facilities and to the expansion or renovation of existing facilities. FY25 Accomplishments - Began design and improvements to a joint operations and emergency management facility that would serve as AW System Operations Center and will house SCADA Water, Reclaimed, and Wastewater Monitoring and Controls, and SMART Water Grid systems. FY26 Objectives - Renovations to the Waller Creek Center facility. Information Technology Funds the procurement, deployment and implementation of computers, servers, networks, IT security, radio and telephone systems and software applications. FY25 Accomplishments - Kicked off the utility's Salesforce enterprise implementation to serve as its Customer Relationship Management solution. FY26 Objectives - Continue advancement of the Salesforce enterprise implementation. - Continue upgrades to computers, servers, networks, IT security, radio and telephone systems, and software applications. Lift Stations Improves or constructs lift stations, which pump wastewater from a lower to a higher elevation. FY25 Accomplishments - Began construction of improvements to the Great Hills Lift Station. - Completed improvement project to the Rock Harbour Lift Station. FY26 Objectives - Make improvements in the South Area by relieving the Springfield Lift Station via gravity interceptor. - Make improvements in the Northwest Area at the Four Points Lift Station and the Boulder Lane Lift Station. 2025-26 Proposed Budget, Austin, TX222AUSTIN WATER Pump Stations Improves or constructs pump stations, which pump water to maintain water pressure and water storage in the distribution system. FY25 Accomplishments - Complete construction of the North Austin Pump Station replacement expanding and enhancing the system in that area. FY26 Objectives - Improve and construct pump stations as needed to address renewal of aging infrastructure and enhance system performance. Reclaimed Water Network Develops facilities to reclaim treated effluent from the wastewater treatment plants and distribute the reclaimed water for appropriate uses, including irrigation and toilet flushing. FY25 Accomplishments - Installed approximately 2,300 feet of 24-inch and 4,300 feet of 30-inch reclaimed water main in Oltorf St from Alvin Devane Blvd to Burton Dr, along with miscellaneous drinking water system improvements to address low drinking water pressure issues near I-35. FY26 Objectives - Continue construction of approximately 5,300 feet of 24-inch reclaimed water main along South 1st Street. Reservoirs Improves and constructs reservoirs, which are used for water storage in the distribution system to maintain water pressure and provide supply for fire flow when needed. FY25 Accomplishments - Completed construction of the replacement North Austin Reservoir in fiscal year 2024. FY26 Objectives - No reservoir projects are planned. 2025-26 Proposed Budget, Austin, TX223AUSTIN WATER Vehicles and Equipment Acquires new and replacement vehicles and equipment to support operations. FY25 Accomplishments - Austin Water Fleet team worked to reduce the average age of vehicles to 7-8 years old to reduce maintenance costs and downtime. FY26 Objectives - Austin Water Fleet team continues to acquire vehicles with a goal of reducing the average age to 7-8 years old to reduce maintenance costs and downtime. Wastewater Pipe Network Improves and constructs the pipe network that transports wastewater from homes and businesses to wastewater treatment facilities. FY25 Accomplishments - Made numerous focused pipe network improvements in response to failures and customer service level issues. FY26 Objectives - Continue to make improvements to the pipe network that transports wastewater from homes and businesses to wastewater treatment facilities to improve customer service. Wastewater Treatment Plants Improves and constructs wastewater treatment facilities that treat wastewater, supply treated effluent to the reclaimed water system, and discharge treated effluent. FY25 Accomplishments - Completed design for headworks and influent lift station which are projects essential to the expansion of Walnut Creek Wastewater Treatment Plant to increase capacity to 100 million gallons per day. FY26 Objectives - Complete design of Walnut Creek Wastewater Treatment Plan Expansion project. - Continue construction at South Austin Regional Wastewater Treatment Plant to provide 30 more years of service life. 2025-26 Proposed Budget, Austin, TX224AUSTIN WATER Water Pipe Network Improves and constructs the pipe network that transports water from water treatment facilities to homes and businesses for potable water uses. FY25 Accomplishments - Substantially completed Advanced Metering Infrastructure installation for small meter residential within city of Austin limits. FY26 Objectives - Complete Advanced Metering Infrastructure Large Meter deployment. Water Treatment Plants Improves and constructs water treatment facilities that withdraw surface water from Lake Travis or Lake Austin and produce treated water for drinking and other potable water uses. FY25 Accomplishments - Replaced Ullrich Water Treatment Plant low service pump station 15kV substation to continue to reliably pump water from Lake Austin. FY26 Objectives - Enhance safety at Ullrich Water Treatment Plant by updating the disinfection process. - Improve Handcox Water Treatment Plant to maintain capacity. Wildlands Acquires and improves wildlands managed by the City of Austin. FY25 Accomplishments - Installed high game fencing on the Ed's Crossing tract of the Water Quality Protection Lands. FY26 Objectives - Begin improvements to the Onion House facility that serves as a satellite office space. 2025-26 Proposed Budget, Austin, TX225AUSTIN WATER Capital Budget Category Buildings and Improvements Information Technology Lift Stations Pump Stations Reclaimed Water Network Reservoirs Vehicles and Equipment Wastewater Pipe Network Wastewater Treatment Plants Water Pipe Network Water Treatment Plants Water/Wastewater /Reclaimed Wildlands Appropriation Through 2024-25 2025-26 Appropriation Total Appropriation Expenditures Through 2024-25 2025-26 Spending Plan 2027-30 Spending Plan 125,865,884 34,366,747 76,743,626 56,362,899 79,531,812 71,515,601 18,816,536 472,866,513 1,322,163,449 518,064,493 190,061,964 0 0 0 0 0 0 0 0 0 0 0 125,865,884 73,807,759 25,974,984 65,800,380 34,366,747 76,743,626 56,362,899 17,925,742 32,253,534 39,745,197 4,145,000 15,978,944 4,922,012 11,872,000 22,327,630 43,896,569 79,531,812 37,978,769 21,189,187 98,781,272 71,515,601 18,816,536 50,745,322 14,716,536 14,859,380 5,100,000 278,125,576 16,400,000 472,886,513 219,470,129 32,620,211 391,398,051 1,322,163,449 371,625,070 178,468,230 1,040,590,109 518,064,493 190,061,964 302,197,187 122,941,404 34,889,469 27,976,741 199,347,907 201,475,905 21,426,141 1,001,000,000 1,022,426,141 0 0 0 2,630,977 0 2,630,977 1,135,346 986,400 2,661,000 Total 2,990,416,643 1,001,000,000 3,991,416,643 1,284,541,995 367,110,558 2,372,676,399 Funding Source Commercial Paper Current Revenue Non-Voter Approved Debt Non-Voter Approved General Obligation Bonds 1,992,887,288 794,229,582 667,000,000 334,000,000 2,659,887,288 1,128,229,582 667,064,920 421,942,875 229,275,928 135,560,590 1,769,926,508 598,260,830 197,724,773 5,575,000 0 0 197,724,773 189,966,757 2,266,483 4,489,061 5,575,000 5,567,443 7,557 0 Total 2,990,416,643 1,001,000,000 3,991,416,643 1,284,541,995 367,110,558 2,372,676,399 2025-26 Proposed Budget, Austin, TX226