SRWD 2026 Approved Budget
On Tuesday, November 11, 2025 at the regular meeting of the SRWD Board of Directors, the proposed budget for 2026 was approved. A copy of the approved budget is available below.
OVERALL ASSESSMENT
The Snake River Water District continues its history of successful fiscal management, and the proposed 2026 budget reflects a net operating income of $143,493 (after contingency).
Relative to the approved 2025 budget, the proposed 2026 budget shows a 12% increase in operating revenue and a 48% increase in operating expenses (after contingency). Relative to projected 2025 year-end levels, the proposed 2026 budget includes an 8% increase in operating revenue and a 22% increase in operating expense (before contingency).
The 2026 Change in Net Position is budgeted for $718,721. The primary factors for this result are $143,493 in Operating Income, $1,797,153 in Non-Operating Revenue, and $1,221,925 in Non-Operating Expenses (after capitalization). The Non-Operating Revenue is mostly Investment Income and Grant Revenue (related to PFAS). The Non-Operating Expenses are for bond interest expense. The system improvements will consume cash, but the resulting new assets will be added to the balance sheet; thus, removing the expenditures from the P&L. The District continues the annual increase in the Water User Fees of 12% for next year. This increase is a critical component of the bond issuance completed in 2024 to pay for the Master Plan’s new infrastructure and replacing components of the aging distribution system.
Comparing this year’s budget to next year’s budget, most operating costs will be similar, although an inflation rate of 5% has been applied to account for the expected increase in normal expenses. One significant proposed change is for a 23% increase to the Operations Contract expense (Water Works West). The Operations Superintendent is requesting a substantial increase to the operations contract to help with the increasing cost to do business in Summit County and provide higher wages and benefits to employees for the upcoming fiscal year. This increase is essential to ensure our continued ability to attract and retain top talent, remain competitive within the industry, and comply with evolving regulatory requirements in a challenging labor market.
Another substantial increase in operating expenses is for PFAS Detection. The $500,000 budgeted is expected to be offset by government grants for emerging contaminants. Thus, the costs of engineering design for a PFAS solution should be reimbursed by grants, which will be reflected in Non-operating Revenue. The District’s auditors prescribed this accounting mechanism. While proper accounting, it does make the Operating Expenses appear higher than they truly will be.
Regarding capital expenses for system improvements, the District has successfully replaced water mains and fire hydrants this year, and the upgrades to Base 2 Water Treatment Plant are expected to be completed in 2025. The new Base 2 Storage Tank is now known as the Tenderfoot Tank. The access road and a new transmission line are expected to be completed in 2025. The new tank is currently under engineering design. The construction of the tank is budgeted for $7,500,000, which should bring the project to completion in 2026.
Annual Pipeline Replacements are budgeted at $1,791,337. Another $442,000 is budgeted for smaller projects such as hydrant replacements, well improvements, and upgrades to the SCADA systems.
Non-Operating Income (not including grants) is mostly from Tap fees and Interest Income is budgeted to be $1,297,153, which is a decrease of 29% from last year’s budget. The budget for Tap Fees in 2026 has been reduced to $100,000 based on fewer anticipated developments planned. The budget for Interest Income is $1,160,000 based on a declining yield at ColoTrust and decreasing cash balances from capital spending.
OPERATING REVENUE AND EXPENSE
In 2025, actual Operating Income is projected to be $375,777 as compared to a budget of $614,517. This lower-than-expected result is primarily the result of $450,000 in PFAS Detection expenses. The District has already been awarded almost $500,000 in grants to reimburse for PFAS-related costs; therefore, the net Operating Income will exceed expectations.
In 2026, Operating Income is budgeted at $143,493. This income is 62% lower than 2025 projections; however, without the $259,213 budgeted for Operating Contingency, the Operating Income would be $402,706 and 7% better than 2025.
Operating Revenue for 2026 is budgeted to be $2,395,749 which is 12% above the 2025 budget, simply based on the rate increase to fund the Master Plan. Operating Expenses (not including contingency and PFAS) for 2026 are budgeted to be $1,493,043 which is 5% above the 2025 budget and 7% above the 2025 projected actual. The largest percentage increase in operating expenses (not including PFAS) for 2026 versus 2025 budget is a 133% increase in Audit Fees based on the extra work required to process the data pertaining to the Master Plan and Bond Offering. Operating Contingency for 2026 is budgeted at $259,213 which was calculated as 20% of Operating Expenses other than the Operations and Administrative contracts (fixed amounts).
NON-OPERATING REVENUE AND EXPENSE
Non-Operating Revenue for 2026 is budgeted to be $1,797,153 and is 1% lower than the 2025 budget of $1,818943. Investment Income is budgeted to be $1,160,000 because the District is expected to have approximately $10 million in operating cash reserves and $15 million in remaining bond proceeds after capital expenditures - both earning an annual yield of about 3.5%.
Non-Operating Expenses for 2026 are budgeted at $10,955,262. Regarding capital expenses for system improvements, the District has planned projects totaling $9,733,337 which will have a zero P&L impact. The largest expenditure is budgeted for the new Tenderfoot Storage Tank at $7,500,000. It is anticipated that specifications and construction plans for the tank will be completed in the spring of 2026, and the new tank will be constructed in 2026. Other significant system improvements include $1,791,337 for Pipeline Replacements.
Snake River Water District 2026 Budget
| 2025 Budget (approved) | 2025 Q3 Actuals | 2025 Actual (projection) | 2026 Budget (proposed) | 2026 Proposed % of 2025 Projection | 2026 Proposed % of 2025 Approved | |
| Ordinary Income/Expense | ||||||
| Income | ||||||
| 41000 · Water Fees | ||||||
| 41200 · Water User Fees | 2,135,491 | 1,673,692 | 2,231,590 | 2,391,749 | 107% | 112% |
| 41600 · Connection Fees | 3,000 | 1,950 | 2,000 | 3,000 | 150% | 100% |
| 41700 · Temporary Water Fees | 1,000 | 1,415 | 1,500 | 1,000 | 67% | 100% |
| Total 41000 · Water Fees | 2,139,491 | 1,677,057 | 2,235,090 | 2,395,749 | 107% | 112% |
| Total Income | 2,139,491 | 1,677,057 | 2,235,090 | 2,395,749 | 107% | 112% |
| Expense | ||||||
| 50000 · Expenditures O&M | ||||||
| 50100 · Operations Contract | 315,895 | 236,921 | 315,895 | 390,000 | 123% | 123% |
| 50200 · Chemicals/Chlorine | ||||||
| 50300 · Laboratory Testing | 21,000 | 5,280 | 7,040 | 22,050 | 313% | 105% |
| 50200 · Chemicals/Chlorine - Other | 38,588 | 31,323 | 41,764 | 40,517 | 97% | 105% |
| Total 50200 · Chemicals/Chlorine | 59,588 | 36,603 | 48,804 | 62,567 | 128% | 105% |
| 50400 · Maint Parts/Materials | 231,525 | 82,386 | 200,000 | 243,101 | 122% | 105% |
| 50510 · Ops Engineering and Design | ||||||
| 50500 · O&M Engineering | 2,100 | 0 | 2,100 | 2,205 | 105% | 105% |
| 50700 · GIS Engineering-Ops | 50,000 | 2,670 | 25,000 | 25,000 | 100% | 50% |
| Total 50510 · Ops Engineering and Design | 52,100 | 2,670 | 27,100 | 27,205 | 100% | 52% |
| 50600 · Utilities | 126,788 | 82,532 | 126,788 | 133,127 | 105% | 105% |
| 50900 · 811 Notification System | 1,050 | 100 | 200 | 1,103 | 551% | 105% |
| Total 50000 · Expenditures O&M | 786,946 | 441,212 | 718,787 | 857,103 | 119% | 109% |
| 54000 · Expenditures Administration | ||||||
| 55000 · Admin Contract | 292,358 | 219,268 | 292,358 | 306,976 | 105% | 105% |
| 55100 · Audit Fees | 15,000 | 20,282 | 20,000 | 20,000 | 100% | 133% |
| 55200 · Insurance (Admin & Ops) | 60,000 | 63,969 | 65,000 | 75,000 | 115% | 125% |
| 55300 · Legal - General | ||||||
| 60500 · Legal Fees Water Rights | 125,000 | 111,495 | 120,000 | 15,000 | 13% | 12% |
| 55300 · Legal - General - Other | 13,230 | 16,862 | 22,483 | 17,000 | 76% | 128% |
| Total 55300 · Legal - General | 138,230 | 128,357 | 142,483 | 32,000 | 22% | 23% |
| 55400 · Board Expenses | 8,400 | 3,719 | 8,000 | 8,820 | 110% | 105% |
| 55450 · Master Plan Expenses | 36,383 | 27,769 | 37,026 | 45,000 | 122% | 124% |
| 50350 · PFAS Detection | 105,000 | 125,075 | 0 | 0 | 0% | 0% |
| 55480 · Cybersecurity | 0 | 36,408 | 60,000 | 60,000 | 100% | |
| 55500 · Misc Expenses | 4,410 | 1,245 | 3,500 | 4,631 | 132% | 105% |
| 55600 · Ofc/Tele/Postage/Bank | ||||||
| 55610 · Office Supplies | 4,800 | 1,558 | 4,500 | 5,040 | 112% | 105% |
| 55620 · Postage | 1,900 | 1,248 | 1,500 | 1,995 | 133% | 105% |
| 55630 · Bank Charges | 310 | 547 | 729 | 326 | 45% | 105% |
| 55640 · Telephone/Internet | 6,000 | 4,312 | 5,749 | 6,300 | 110% | 105% |
| Total 55600 · Ofc/Tele/Postage/Bank | 13,010 | 7,665 | 10,219 | 13,661 | 134% | 105% |
| 55700 · Election | 105 | 52 | 52 | 110 | 212% | 105% |
| 55800 · Computer Support & Hardware | 42,000 | 3,972 | 42,000 | 44,100 | 105% | 105% |
| 60300 · Forest Service Lease | ||||||
| 60200 · Windy Gap Water Fee | 1,250 | 1,250 | 1,250 | 1,250 | 100% | 100% |
| 60300 · Forest Service Lease - Other | 8,652 | 0 | 10,216 | 10,500 | 103% | 121% |
| Total 60300 · Forest Service Lease | 9,902 | 1,250 | 11,466 | 11,750 | 102% | 119% |
| 60400 · Water Rights Engineering | 13,230 | 1,774 | 10,000 | 13,892 | 139% | 105% |
| Total 54000 · Expenditures Administration | 738,028 | 640,806 | 702,104 | 635,940 | 91% | 86% |
| Total Operating Expense Before Contingency | 1,524,972 | 1,082,018 | 1,420,891 | 1,493,043 | 105% | 98% |
| Operating Contingency | 183,344 | 0 | 0 | 159,213 | ||
| Total Expense | 1,524,974 | 1,082,018 | 1,420,891 | 1,652,256 | 116% | 108% |
| Net Ordinary Income | 614,517 | 595,040 | 814,199 | 743,493 | 91% | 121% |
| Other Income/Expense | ||||||
| Other Income | ||||||
| 64000 · Non-Operating Income | ||||||
| 41500 · System/Tap Fees | 146,000 | 101,400 | 101,400 | 100,000 | 99% | 68% |
| 41800 · Lease Revenue | 36,071 | 29,805 | 36,071 | 37,153 | 103% | 103% |
| 419000 · Investment Income | ||||||
| 42001 · Bond Proceeds Interest Income | 0 | 851,116 | 1,134,821 | 790,000 | 70% | |
| 42400 · Arbitrage Rebate | 0 | -34,689 | -138,757 | -130,000 | 94% | |
| 42000 · Interest Income - Other | 1,636,872 | 415,971 | 554,628 | 500,000 | 90% | 31% |
| Total 419000 · Investment Income | 1,636,872 | 1,232,397 | 1,550,692 | 1,160,000 | 75% | 71% |
| Total 64000 · Non-Operating Income | 1,818,943 | 1,363,603 | 1,688,163 | 1,297,153 | 77% | 71% |
| 42800 · Grant Revenue | 0 | 96,140 | 390,000 | 4,000,000 | 1026% | |
| Total Other Income | 1,818,943 | 1,459,743 | 2,078,163 | 5,297,153 | 255% | 291% |
| Other Expense | ||||||
| 65300 · Interest Expense-Capital Proj | 1,266,550 | 767,503 | 1,214,675 | 1,221,925 | 101% | 96% |
| 65000 · Capital/System Improvements | ||||||
| 65130 · Base 3 PFAS | 0 | 0 | 450,000 | 4,000,000 | 889% | 0% |
| 65272 · Base 1 Pumps & Electrical | 375,100 | 35,247 | 125,000 | 0 | 0% | 0% |
| 65242 · Pipeline Replacements | 1,628,488 | 262,609 | 350,000 | 1,791,337 | 512% | 110% |
| 65111 · New Base II Tank | 4,000,000 | 482,379 | 2,000,000 | 7,500,000 | 375% | 188% |
| 65155 · SCADA | 34,870 | 0 | 34,870 | 50,000 | 143% | 143% |
| 65250 · Base 2 WTP Soda Ash & Chlorine | 1,074,000 | 445,399 | 824,000 | 400,000 | 49% | 37% |
| 65260 · Hydrant Replacement Program | 220,000 | 208,321 | 220,000 | 242,000 | 110% | 110% |
| 65270 · Well Improvements | 146,740 | 0 | 0 | 150,000 | 102% | |
| Total 65000 · Capital/System Improvements | 7,479,198 | 1,433,954 | 4,003,870 | 14,133,337 | 353% | 189% |
| Total Other Expense | 8,745,748 | 2,201,458 | 5,218,545 | 15,355,262 | 294% | 176% |
| Net Other Income | -6,834,321 | -741,715 | -3,140,382 | -10,058,109 | ||
| Net Income (Change in Net Position) | -6,219,804 | -146,675 | -2,326,183 | -9,314,616 | ||
| Capitalized Assets | 14,133,337 | |||||
| Change in Net Position Before Non-Cash Items | 4,818,721 | |||||
| Non-Cash Items | ||||||
| 68000 · Depreciation Expense | -800,000 | 0 | -750,000 | -775,000 | ||
| 68100 · Amortization Subscription Asset | 0 | 0 | -15,000 | -15,000 | ||
| 42600 · Contribution of Assets | 122,163 | 0 | 177,409 | 106,229 | ||
| Change in Net Position After Non-Cash Items | 4,134,950 | |||||
| Bond Principal Payment | 885,000 | |||||
| Total 2026 Cash Expenditures | 17,892,518 | |||||
| Non-operating Income After Capitalization | 4,075,228 | |||||
| Net Operating Income Without Contingency | 902,707 | |||||
| Change in Net Position Without Contingency | 4,977,935 |