Preliminary Fiscal Year 2027 Budget. Mr. Patroelj presented the proposed Fiscal Year 2027 Budget. The budget reflects Option C with modifications based on Board input and updated financial projections including a 6.07% increase in water sales, an average wholesale water cost of $3.149 per 1,000 gallons, $842,000 allocated for capital improvements, elimination of two budgeted positions resulting in annual savings exceeding $130,000, a projected 15% increase in employee healthcare costs and average employee compensation adjustments of approximately 4.34% dependent upon the adopted pay grade model. Staff also estimated that a $0.10 handling charge increase would generate approximately $57,000 annually but was not included in the proposed budget. Mr. Marez commented that the budget remains conservative. He added that a letter and the proposed budget would be sent to STWA wholesale customers for a 30-day review and comment period.

Bastiat Liberty & Property Rights Analysis

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 2.3/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.