Ventura Water presents FY2027 budget with rate increases, capital push for purification and state interconnect

Ventura Water staff on April 27 presented the proposed fiscal year 2027 budget, outlining rate changes, operating costs and capital investments that officials say are aimed at long-term water reliability. Paul Fields, senior financial analyst, told commissioners the plan includes a first-year water rate increase of about 10.5% and an 18% increase for wastewater, and that the personnel budget is $12.6 million, a roughly 23% increase compared with earlier years.

Fields said the budget process began in December 2025 and includes continued work on an advanced water purification membrane bioreactor (MBR) and a state water interconnect. "Year one of council-approved utility charges for services rate increases pegged at 10 and a half percent on the water side are included in the fiscal year 27 proposed budget," Fields said. He added that the city is carrying debt service for previously issued refunding bonds (about $3.7 million in the water operations budget) tied to earlier capital projects.

Why it matters: the package funds multi-year capital work intended to reduce pressure on ratepayers over time but requires higher near-term rates. The staff presentation noted the city has pursued and secured substantial grant funding to support projects; staff described grant awards as appropriated when received and carried forward across fiscal years as needed.

Commissioners focused questions on categorical detail. Several asked for clearer breakdowns of professional services and consultant spending, citing monitoring contracts tied to regulatory requirements and consent-decree-related work. Commissioner Savage noted specific wastewater monitoring contracts: $730,000 for MAP monitoring and $250,000 for estuary monitoring, which staff identified as larger consulting obligations necessary to meet discharge reporting and consent-decree monitoring requirements.

Other points in the presentation: staff said the services-and-supplies category rises roughly 12%, with utilities (groundwater extraction, pumping and energy) the largest slice; internal service charges and transfers to the general fund, gas tax fund and capital funds remain part of how Ventura Water allocates costs across the enterprise. Staff also told commissioners it plans to include one new full-time utility billing specialist in the recommended budget sent to council.

On infrastructure, staff reiterated capital spending priorities: construction work on the purification MBR and AV disinfection projects and the state water interconnect. "Resources are included for the construction phase of the advanced water purification facility, the membrane bioreactor and AV disinfection project and the state water interconnect," Fields said.

What remains: commissioners requested supplemental materials showing transfers and interfund movement (how net operating income is calculated and what specifically funds CIP transfers), clearer line-item detail for consultant categories, and estimates of how grant awards will be applied across projects. Staff said they will bring additional detail to the commission and will present the proposed budget to city council on April 28, with a final adoption hearing scheduled June 9.

Next steps: the commission received and filed the proposal and will review follow-up materials; the council will consider the recommended budget at upcoming workshops and hearings.