The Austin Water and Wastewater Commission meeting on July 16, 2025, focused on the financial outlook for the upcoming fiscal year, highlighting significant budgetary changes and projections. The discussion centered on the proposed budget for fiscal year 2026, which anticipates a total expenditure of approximately $849.9 million, marking a nearly 10% increase from the previous year.

Key points included a projected deficit in the FY 25 amended budget, yet officials noted an expected ending fund balance of around $268 million, bolstered by higher-than-anticipated revenues earlier in the year due to favorable weather conditions. Despite the proposed deficit, the commission expects to maintain a healthy financial position, with debt service coverage exceeding the policy target of 1.75 times.

The meeting also addressed the anticipated growth in full-time equivalent positions, increasing from 1,410 to 1,439. This growth aligns with the overall budget increase, which is largely attributed to rising service costs and capital expenditures related to ongoing projects, including the Walnut Creek expansion.

Revenue projections for FY 2026 indicate a total service revenue of approximately $761.7 million, reflecting an 8% increase from the current year. This increase is primarily driven by higher wastewater service revenues, which are expected to rise by 13.7%.

The commission emphasized the importance of managing costs effectively while planning for future rate adjustments to mitigate larger increases. The meeting concluded with a commitment to transparency and fiscal responsibility as the commission prepares for the upcoming budget year.