Garden Ridge commission previews FY2027 water budget, approves plan to hire rate‑study consultant

Ryan, a city staff presenter, told the Garden Ridge Water Commission on June 16 that the preliminary FY2027 proposed water budget includes total expenditures of $3,212,000 and a target reserve equal to roughly 10 months of expenditures. He said the draft proposal holds current water rates flat for the coming year while the city pursues grant funding and a consultant‑led rate study.

"You have the total revenue of 3,421 and then total expenditures 3,212,000," Ryan said as he reviewed the budget documents with the commission, noting the financial model shows a 10‑month reserve that staff recommended could be evaluated if external grant funding becomes available.

The commission discussed capital needs, including completing the Vista Ridge project (staff had a $560,000 placeholder) and a planned sewer interconnect that will require boring under railroad tracks. Ryan said some first‑year CIP projects—tank rehabilitation, valve replacements, a generator and a high‑service pump swap—were identified but not yet incorporated into the FY2027 budget.

To develop a defensible roadmap for rates, staff recommended hiring NewGen Strategies and Solutions to conduct a five‑year (FY28–FY32) water‑rate study covering demand forecasting, customer class review, rate structure evaluation and financial modeling. Ryan said the consultant would produce draft deliverables in roughly 90–120 days and estimated the cost at $29,000, with $30,000 budgeted for the work.

Commissioners urged the city to require the consultant to present multiple rate alternatives and to follow accepted rate‑setting steps. One commissioner warned that the value of the work depends on data quality and asked that the study align with the water master plan and the long‑term CIP.

"I would hope that we would ask them to follow [American Water Works Association] process or some similar standard," one commissioner said, urging the commission to get alternatives rather than a single recommendation.

Staff explained the city plans a council workshop the following evening and will return to the commission with a more defined budget next month. The commission expressed openness to keeping rates flat for the coming year while using the study and grant outcomes to decide whether to lower reserves to fund prioritized CIP work.

The commission did not take a final vote on rates or the budget that night; staff will present updates and the consultant's work in future meetings.