Carson City Utility Finance Oversight Committee Meeting – April 2, 2026

The Utility Finance Oversight Committee met on April 2, 2026, at 10:00 AM. The meeting was called to order with a quorum present. The committee elected officers, reviewed and approved tentative fiscal year 2027 budgets for the wastewater, water, and stormwater utility funds, and received a presentation on utility personnel, projects, and planning.

Election of Officers

• Ron Connect was nominated and unanimously elected as Chair for the 2027 meetings (and subsequent meetings in 2026). Cynthia Terchek was nominated and unanimously re-elected as Vice Chair. The outgoing Chair noted that the committee rotates chairs every two years, and he had served for two years.

Discussion Items

• Tentative Fiscal Year 2027 Wastewater Fund Budget

  • Jamie Stevenson (Accounting Manager) presented the budget, which includes a 2.9% CPI-based rate increase (CPI-U for West urban area, December 2025). Salaries and benefits increase by $246,792 due to contractual increases, benefit rate hikes, and anticipated promotions. Supplemental requests include $200,000 for chemicals and a $31,500 reduction for mosquito control (reallocated across multiple funds). Capital spending planned at $6,246,000 for lift station reconstruction and pipeline replacement. The budget meets all financial policy requirements.
  • Committee member Ron Connect praised the modest 2.88% revenue increase, calling it the best in years, and suggested rates could decline in real terms over time, comparing to competitive sectors. He expressed hope for future presentations showing real cost adjustments. Vice Chair Cynthia Terchek disagreed, stating rates should never go down or negative, as utilities are monopolies. Discussion also covered revenue forecasting methods, customer growth (~1% annually), and how CPI increases meet financial metrics.
  • Action: Motion to acknowledge compliance and recommend Board approval passed unanimously.

• Tentative Fiscal Year 2027 Water Fund Budget

  • Presented by Jamie Stevenson. Includes 2.9% CPI rate increase. Salaries and benefits up $290,513; supplemental requests of $50,000 for water purchase (commodity cost increase) and $300,000 for professional services (system analysis and master planning). Capital spending planned at $4,640,000, primarily waterline replacement. Operating reserve target 60–90 days; policy goals met.
  • Ron Connect commended the budget and noted that salary increases should align with inflation. Cynthia Terchek cautioned against losing employees to other agencies (e.g., TMWA) and emphasized retaining human capital. Member Johns asked about benefits as percentage of salaries (~63%) and retirement/health insurance costs; Stevenson reported a 10% health insurance increase and no new PERS increases yet.
  • Action: Motion to acknowledge compliance and recommend Board approval passed unanimously.

• Tentative Fiscal Year 2027 Stormwater Utility Fund Budget

  • Presented by Jamie Stevenson. Includes 2.9% CPI rate increase. Salaries and benefits up $46,613; supplemental of $35,000 for mosquito control (reallocation from wastewater). Capital spending planned at $1,925,000 for citywide stormwater improvements. Operating reserve target 45 days; policy goals met.
  • Discussion included an update on the Bowers Lane stormwater project (design underway in 2026) and the William Street utility work coordination. Amanda Singleton (Stormwater Manager) provided details. Darren Schultz (Public Works Director) explained the new equitable cost allocation for mosquito control across city funds. Committee members expressed support for the approach.
  • Action: Motion to acknowledge compliance and recommend Board approval passed unanimously.

• Presentation: Personnel, Projects, and Planning – Carson City Utilities

  • Andy Hummel (Utility Manager) presented an overview of all three utility funds. Key points: water and wastewater budgets ~$20M each; stormwater ~$3M. Staff of 41 in utility division. Water system has 350 miles of pipe, 16 pressure zones, 21 active wells, and 60 pressure reducing stations. Wastewater system: 320 miles of collection pipe, 5 lift stations, one treatment plant (permitted 6.9 MGD, current flow ~5.5 MGD). Reuse system uses all treated effluent for irrigation. Capital projects include the Quill water treatment plant rebuild (50% complete, $23M contract), tank rehabs, and the William Street pipeline replacement. Water resource portfolio includes 18,000 acre-feet of rights; current production ~10,000 acre-feet. Well investigations using USGS dye testing are underway to address iron bacteria (Well 44) and uranium (Well 10) issues.
  • Committee members asked about the Bowers Lane project tie-in with Highway 50, the status of the inactive arsenic treatment plant, the intertie with Douglas County (water rights owned by Carson City, good working relationship), and surface water/groundwater percentages. Hummel noted that before Quill went offline, surface water was ~25% of supply; during downtime they rely more on groundwater and river induction wells.
  • No action taken; informational item.

Key Outcomes

• Tentative Wastewater Fund Budget FY2027 – Approved unanimously (motion by Connect, seconded).
• Tentative Water Fund Budget FY2027 – Approved unanimously (motion by Connect, seconded).
• Tentative Stormwater Utility Fund Budget FY2027 – Approved unanimously (motion by Connect, seconded).
• Officers Elected – Ron Connect (Chair), Cynthia Terchek (Vice Chair) for the 2026–2027 term.
• Next Steps – The three budgets will be forwarded to the Board of Supervisors for final approval. The committee will continue to monitor utility financial policies and capital projects.