20260729 – 002: FY26-27 Proposed Budget Recommendation — original pdf

Recommendation

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