Page 31 - CityofLakeWorthFY26AdoptedBudget

Staff continues to review utility rates on an annual basis to ensure they align with the
financial needs and infrastructure goals identified in the City’s adopted Water and

Sewer Master Plans. These plans serve as long-term strategic guides for system

maintenance, service improvements, and capital investments to support future growth
and regulatory compliance.

For Fiscal Year 2026, the Water and Sewer Utility Fund reserves are projected to total

approximately $8,977,168, with budgeted operational expenditures of $3,594,618.

This level of reserve equates to approximately 210% of the annual operating budget,

significantly exceeding the industry-recommended minimum of 90–120 days.

Maintaining strong reserves not only ensures the City's ability to respond to
unforeseen emergencies or infrastructure failures but also provides flexibility to fund

critical capital projects without immediate reliance on debt financing or sharp rate
increases.

This prudent fiscal strategy reflects the City of Lake Worth’s continued commitment to
responsible utility management and long-term infrastructure sustainability.

STORMWATER FUND

The Stormwater Fund is a dedicated enterprise fund supported by drainage fees
assessed on monthly utility bills. Established following a public hearing and City

Council approval in 2020, the fund was created based on recommendations from the

Stormwater Study conducted by Kimley-Horn, which identified long-term
infrastructure needs and funding strategies to manage stormwater runoff and reduce

localized flooding.