Sanitary Sewer Debt Service

2026 Budget

Description

This fund is supported by sanitary sewer user fees and is used for current sanitary sewer related debt obligations and reserve balances for the same.

The charts and graphs below demonstrate how the City’s Sewer Debt Fund is expected to accumulate a balance in the early stages of the projects. As debt repayments begin and then escalate quickly, the projections highlight the importance of long-term financial planning. Because these are large, multi-year projects, the chart looks ahead over a full decade.

 

The Sewer Debt Fund balance is calculated using information available at this time. Since project costs will change due to construction pricing, interest rates, and other factors, these projections will be updated periodically.

 

Currently, annual debt payments are relatively low, allowing the fund balance to grow. However, as additional sewer projects are completed, the City’s debt obligations increase. Over time, debt payment costs will consume the available fund balance. By 2035, the fund balance is projected to decline to approximately $389,000, indicating that current revenue levels may not be sufficient to keep pace with future debt costs.

Sewer Debt Fund-Forecast 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
                     
Beginning Fund Balance $0 $1,618,212 $3,321,843 $4,451,938 $5,082,496 $5,539,132 $5,409,621 $4,754,038 $3,298,172 $1,842,306
                     
Revenue-User Fees 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
                     
Expenditures-Debt  381,788 296,369 869,905 1,369,442 1,543,364 2,129,511 2,655,583 3,455,866 3,455,866 3,452,941
                     
Ending Fund Balance $1,618,212 $3,321,843 $4,451,938 $5,082,496 $5,539,132 $5,409,621 $4,754,038 $3,298,172 $1,842,306 $389,365

Revenue Summary

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