West County Wastewater expands FY 2027 budget to $47.9m amid 12% rate hike and capital push

West County Wastewater expands FY 2027 budget to $47.9m amid 12% rate hike and capital pushThe California utility is increasing its expenditure by $11.3 million to address rising utility costs, pension liabilities, and a $6.2 million bump in capital spending, offset by new rate revenues and strong interest earnings.

The Board approved a $47.9 million expenditure budget for FY 2027, an $11.3 million increase from the prior biennial estimate.

Revenues will rise by $9.5 million, bolstered by a recently adopted 12% annual rate increase and $6 million in interest from unappropriated bond proceeds.

Wastewater treatment and utility costs are projected to increase by $922,400, with grid electricity and natural gas rates rising 40% year-over-year.

The utility's $110 million "Clean and Green" project is nearing completion, expected to save $2 million annually in energy costs and insulate the plant from grid outages.

West County Wastewater District (WCW) in California has approved a revised $47.9 million expenditure budget for Fiscal Year 2027, increasing its financial commitments by $11.3 million to tackle utility inflation, pension obligations, and immediate capital needs. The Board of Directors adopted the update during its June 17 meeting. The spending jump is fully covered by a $9.5 million upward revision in projected revenues, bringing total FY 2027 revenues to $48.2 million. This boost is primarily driven by a recently adopted 12% increase in sewer service charges—expected to generate an additional $2.2 million—and $6 million in interest earnings on previously unappropriated bond funds. The district also noted a $1.7 million rise in general interest earnings due to higher-than-expected returns. On the cost side, personnel expenses will rise by $2.8 million to $19.5 million, largely due to a $1.9 million adjustment for California Public Employees' Retirement System (CalPERS) unfunded accrued liability and medical benefits. Meanwhile, wastewater treatment and utility costs are projected to increase by $922,400. Finance Manager Maria Bagley noted that utility costs have surged 35% year-over-year, with natural gas and electricity rising 40% despite no increase in consumption. Chemical costs have also risen 10-15% annually. To support ongoing infrastructure optimization, non-operating expenses—including capital outlay—will jump by $6.2 million to $15.5 million. This includes roughly $3 million in new capital funding and a $250,000 increase for collection system spot repairs. The investments are part of a broader $63 million five-year capital improvement plan addressing aging gravity sewers, force mains, and lift stations. Providing a buffer against rising power costs, the district's "Clean and Green" project at the Water Quality and Resource Recovery Plant is nearing completion. The project features a micro-grid with solar power, a battery energy storage system, and cogeneration. According to General Manager Andrew Clough, the upgrades will virtually eliminate future utility bills, saving the district at least $2 million per year and averting the need for an additional 7% annual rate increase.