Sarpy County wastewater agency previews FY2627 budget, flags rising debt service and reserve needs

Mark Setout, treasurer for the Sarpy County and Cities Wastewater Agency, presented the agency's draft fiscal 2627 budget on March 25, telling board members loan-funded project spending is expected to decline while operating revenues rise.

Setout said the agency's budget shows loan amounts down about 49% year-over-year and budgeted revenue up roughly 99% compared with the prior year, explaining the apparent revenue drop when loans are excluded: "To keep things consistent, we included the loans here again. So basically, we are seeing a $9 million reduction in the loan amounts and a $3 million increase in actual revenues from operations." He also noted the agency recorded about $289,000 in revenue for the month and $3.3 million year to date, putting the agency at about 109% of budget for the period.

The presentation called out several line items that affect next year's plan: a $2 million grant request through Congressman Bacon for easement acquisitions, $2.4 million in easement acquisition funding tied to that grant, $500,000 budgeted for decommissioning an existing Sarpy County lift station (Setout said current estimates put that work closer to $375,000), and engineering and permitting for Phase 1B and Phase 2 design work.

Setout said Belleview had paid $3.68 million to upsize pipe in its jurisdiction; that payment sits on the agency balance sheet as a liability to be repaid via credits to Belleview on future connection-fee invoices. He also told the board the agency recorded nearly $45,000 in interest income in February from a five-month CD at Five Points Bank and that total cash on hand was about $9.3 million at the end of February.

Board members and staff discussed personnel costs included in the draft: Setout said a projected 3% cost-of-living increase and converting the treasurer position from part-time to full-time (with benefits) account for much of a roughly 6.9% personnel cost increase. He said the treasurer can provide a more detailed breakout on request.

Debt-service timing and reserves were central to discussion. Administrator Dan Ho asked PFM to evaluate three narrow questions on the agency's behalf: whether the agency should allow reimbursement to members who build agency trunk lines and on what terms; whether to use the available WIFIA loan; and how to structure a debt-reserve policy given higher-than-expected revenues. Setout's slides showed projected debt-service payments rising to about $5.73 million per year in 2035 and 2036 before declining later in the loan term.

The agency has scheduled a formal board vote on the FY2627 budget for the next regular meeting on April 22, 2026, and staff invited members to submit requests for changes before that date.