Lafayette approves 2026 water and wastewater budgets targeting solar savings and capital upgrades

Lafayette approves 2026 water and wastewater budgets targeting solar savings and capital upgradesCity Controller Jeremy Deal presented a financial plan that leverages renewable energy to offset power costs and outlines funding for the completion of the Service Area 11B extension.

The Water Works operating budget is set at $14.1 million, a slight decrease from the previous year, while the Renew (wastewater) operating budget dropped nearly $8.5 million to $41.9 million.

Solar installations at the Renew campus are crediting the utility with lower electricity budgets despite rising utility rates.

Capital priorities include the pursuit of a High Rate Treatment facility and the 'front running' Ulin water main replacement project.

The water utility plans to repay an infrastructure loan from the wastewater department using proceeds from a bond issuance expected after new rates take effect mid-year.

The Lafayette Common Council voted 7-0 to approve Resolution 2026-02, establishing the 2026 operating budgets for the city’s Water Works and Renew (wastewater) departments. City Controller Jeremy Deal presented the financial overview, noting that both utilities are positioned to fund necessary capital improvements while managing operating costs. The Water Works operating budget was proposed at $14,113,404, an overall decrease of just over $100,000 compared to the current year. Deal reported that while the utility faces moderate increases for chemicals and liability insurance, the budget sustains an elevated engineering services allocation to support the launch of a comprehensive lead service line replacement effort. This $40 million, 10-year program is set to begin in early 2025, targeting approximately 3,200 homes—starting with 867 properties in the north end—to meet EPA requirements ahead of the 2034 deadline. The water depreciation fund is set at $4.135 million to cover water campus improvements, pump rehabilitations, well exploration, and capital asset procurement. On the wastewater side, the Renew operating fund budget was established at $41,922,293, down nearly $8.5 million from the previous year. Deal attributed $6 million of this reduction to a lower transfer to the depreciation fund, alongside significant savings in non-operating debt service transfers related to the 2021b sewer revenue bonds. Notably, despite anticipated electric rate increases from Duke or Synergy, the wastewater electricity budget is down slightly due to efficiencies and the installation of solar power at the Renew campus. The Renew depreciation fund, budgeted at $12.6 million, will target the pursuit of a High Rate Treatment facility, further solar projects, and equipment upgrades. It will also fund the completion of the Service Area 11B extension. Deal noted that the 2024A sewer bonds only partially funded the Service Area 11B project, requiring the utility to use cash reserves to finish the work this year. Deal also addressed an inter-departmental loan regarding Service Area 11B infrastructure. The Renew department previously funded these improvements, and Water Works will repay the debt following its first bond issuance associated with a pending rate case. New water rates are expected to come into effect mid-year.