The Austin Water and Wastewater Commission Budget Committee convened on June 2, 2025, to discuss critical issues surrounding water conservation and revenue stability amid ongoing drought conditions. The meeting highlighted the city's current watering restrictions and their implications for both residents and the utility's financial health.

A significant focus of the discussion was the city's decision to maintain a once-a-week watering schedule, a practice that has been in place for several years. This strategy aims to manage water demand effectively during drought periods. Committee members noted that this consistent approach has led to a reduction in variability in water usage, which is crucial for forecasting and managing revenue. Historical data from previous droughts indicated that average residential water demand dropped significantly, from 8,800 gallons per year at the onset of the 2015 drought to approximately 5,800 gallons by its conclusion. The current strategy has helped stabilize demand, with fluctuations remaining within a manageable range.

The committee also addressed the financial implications of these conservation measures. During past droughts, the utility faced substantial revenue shortfalls, with losses reaching up to $50 million. To mitigate such risks, the city established a water revenue stability reserve fund, designed to provide a buffer against unexpected drops in demand. This fund, created in response to the financial challenges of previous droughts, allows the utility to maintain stable rates without resorting to drastic rate increases during periods of reduced water consumption.

The reserve fund is intended to cover operational costs and ensure that the utility can continue to provide reliable service even when demand fluctuates. Currently, the fund aims to maintain approximately 120 days of operating cash, although it has recently dipped slightly below this target. The committee discussed the importance of replenishing this reserve to avoid future financial instability.

In conclusion, the discussions at the Austin Water and Wastewater Commission Budget Committee meeting underscored the city's proactive measures in managing water resources and financial health during challenging drought conditions. The ongoing commitment to a consistent watering schedule and the establishment of a revenue stability fund reflect a strategic approach to balancing conservation efforts with the need for reliable utility revenue. As the city navigates these challenges, the effectiveness of these strategies will be crucial in ensuring sustainable water management for the community.