The Water and Sewer Fund (Fund 040) has a total revenue budget of $15,475,000 with a projected beginning fund balance of $24,279,855. The budget includes total expenses of $18,424,904 as well as the required 90-day operating reserves of $4,041,009, leaving a remaining fund balance of $21,329,951 (Water & Wastewater Summary, page 280). This will allow the City to continue with on-going capital improvement and infrastructure needs. Revenue sources include water and wastewater sales, reclaimed water sales, and water and sewer sales to RedTail and Sorrento Springs. The fund has operating expenses of $12,217,104 and non-operating expenses of $6,207,800 which includes capital items, inter-fund transfers, general liability and property insurance, and debt service (Water & Wastewater Expenses, page 282).
The Water and Sewer Fund includes the Director of Public Works for Utilities, the Water Superintendent, Utility Supervisor and several utility operators and maintenance workers. There are 23 positions in Water, 22 in Wastewater, and 23 in Utility Administration which includes Customer Service and meter reading services.
During FY 2024/25 the City contracted for a new five-year rate study. The impact fee portion was completed in FY2025/26, and the new rates are in effect, as of January 1, 2026. The study water and sewer rates section will be available soon and will be implemented once approved by the City Commission. It is imperative that the City maintains sufficient rates to cover normal operations, renewal and replacement of infrastructure needs, adequate expansion of the system to accommodate growth, and protection to bondholders to make necessary debt payments. A 2.5% increase in the water and wastewater rates went into effect in August 2026, based on historical data. The new rates may be adjusted upon the results of the rate study.
According to the FY2025 Annual Comprehensive Financial Report, the City's Water and Wastewater Utility provides the following services:
Water service to approximately 12,820 customers, supplying over 3.20 million gallons of water per day
Maintenance and repair of 188+ miles of water main
Maintenance and repair of 121 miles of sanitary sewer lines
Over 12,820 units served for various services
Average daily flow of 3.2 million gallons
Stormwater utility fees provide the major source of funding for the Stormwater Utility Fund. Other minimal revenue sources include interest earnings. The estimated beginning fund balance is ($255,783). Budgeted revenue for FY 2026/27 is $934,000. Operating expenditures are budgeted at $1,362,602, leaving a fund balance ($684,385). The fund is required to have a required reserve of $473,238 (Stormwater Summary, page 272).
The Stormwater Fund includes four full-time employees and is responsible for street sweeping and drainage maintenance. The Stormwater Fund transfers $260,000 to the Street Improvement Fund and $81,500 to General Fund for a total of interfund transfers of $341,500 (Stormwater Summary, page 272).
The stormwater rates have been evaluated, along with the rate study for the impact fees. It had been over a decade since stormwater rates have increased. The new monthly rates are $8 for residential (an increase from $6) and $16 for commercial consumers (an increase from $12).
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