Pflugerville utility fund targets $66.2M revenue as new wastewater plant comes online

Pflugerville utility fund targets $66.2M revenue as new wastewater plant comes onlineThe Texas city is navigating the operational rollout of the Wilbarger wastewater treatment plant and a water treatment plant expansion in its proposed FY27 budget, offsetting costs by restructuring vacant utility positions.

Utility fund revenue is projected at $66.2 million for FY27, based on recommendations from a recent water and wastewater rate study.

Operating expenditures are budgeted at $32 million, incorporating the new facility costs for the Wilbarger wastewater treatment plant and a water treatment plant expansion.

To balance the budget, the city reduced the utility fund by 10 vacant positions, transferring six to the general fund and leaving four unfunded.

The utility budget includes a $32.5 million transfer for debt service and a 4% transfer to the general fund to cover right-of-way franchise fees.

The City of Pflugerville, Texas, is preparing for significant infrastructure milestones in its fiscal year 2027 budget, balancing the operational costs of new treatment facilities with strategic staffing reductions. During an August 25 budget hearing, Finance Director Tracy Waldron outlined the proposed FY27 utility fund, which projects $66.2 million in revenue based on recommendations from a recent water and wastewater rate study. Operating expenditures are set at $32 million. A major driver of the upcoming budget is the integration of new capital assets into the city's daily operations. "We have the new plant, the Wilbarger wastewater treatment plant, coming online during fiscal '27," Waldron told the council. "So all of those additional expenses have been included. Also the expansion of the water treatment plant." To accommodate these new facility costs while adhering to the city's 25% fund balance policy, the utility department is restructuring its workforce. Ten vacant positions were removed from the utility fund; six were transferred to the general fund to better align with a restructured public works department, and four were left unfunded. City staff noted that while these positions are ultimately needed, leaving vacant roles unfunded was chosen over laying off active employees to maintain service levels amid broader economic constraints. The utility budget also accounts for a $32.5 million transfer for debt service obligations. Additionally, the utility fund will continue its practice of transferring 4% of its revenue to the general fund, acting as a franchise fee to compensate the city for the use of public rights-of-way for its pipes and infrastructure. While the utility fund will transfer $500,000 to a vehicle and equipment replacement fund, Waldron cautioned that further transfers into capital projects will be closely monitored throughout the fiscal year to ensure the fund balance remains at policy levels.