Sutter County Water Works District No. 1 held a June 16 public hearing on its FY 2026-27 recommended budget and is expected to return June 23 for formal adoption, according to the county’s budget packet.
The proposed budget totals $594,985, which the staff report says is $324,690 higher than the prior adopted budget. The increase is driven in part by a $400,000 capital expense for a backup generator at the water treatment plant, offset by a $400,000 federal earmark, the packet says.
Staff warned that the district’s enterprise fund still does not generate enough revenue to cover operating costs. The report says the utility is intended to be self-supporting, but has faced a structural operating deficit and has relied on grants for major infrastructure work. It also says unrestricted net assets were expected to be depleted by July 1, 2026, leaving the district with roughly six months of operating resources.
The budget narrative also points to a Proposition 218 sewer rate study approved by the board in August 2025. Any recommendations from that study are expected to come back to the board for consideration.
The board that oversees Water Works District No. 1 is the Sutter County Board of Supervisors.
