City Department of Public Works staff updated the Improvement and Services Committee on Oct. 1 about New Water’s preliminary 2026 budget and planned infrastructure work, and described related local design outreach for a grant-funded flood-resiliency project.

Staff said New Water is preliminarily projecting a municipal user fee increase in the mid-single digits; staff summarized the figure discussed at New Water as about a 6.3% municipal user fee increase and noted New Water typically targets increases between 5.5% and 7%. Staff said New Water uses fund balance to smooth rate impacts when expenses rise.

DPW staff also described major interceptor rehabilitation work under way and planned: contractors are installing bypass “black pipes” to dewater interceptor sections while crews install cured-in-place pipe (CIPP) liners inside aging interceptor mains. Staff explained the CIPP process as installing a resin-saturated liner inside an existing pipe and curing it to create a new pipe inside the old pipe, a decades-long rehabilitation method.

Staff said the utility is tracking potential new permit requirements from the Department of Natural Resources, including PFAS-related monitoring, and that New Water is drafting a flow-and-infiltration ordinance that could affect municipalities; the draft is under internal review and not yet ready for public comment.

As part of other DPW work tied to a grant for flood resiliency near Bay Beach and Renard Island, staff announced an open house/walking tour Oct. 2 from 4 p.m. to 6:30 p.m. at Paradise North Distillery (101 Bay Beach Road) to present about 60% design concepts and solicit public input. Staff said the county harbor commission and other partners have been consulted on the project and that questions about easements have been raised by county supervisors; staff will follow up on outstanding easement paperwork.

Committee members received the report and placed it on file.