Logo courtesy of City of Biggs

BIGGS, CA (MPG) - Biggs officials are reviewing long-term costs tied to the city’s water and sewer systems as infrastructure maintenance, utility expenses and future capital improvement needs continue growing.

During a May 26 budget workshop, the Biggs City Council reviewed proposed 2026-27 enterprise fund budgets for the city’s water and sewer operations. City Administrator Nicholas Gauthier said the city is restructuring how utility finances are organized to create more accurate budgeting and long-term planning.

Under the proposed budget, the water fund projects about $499,515 in water sales revenue, while the sewer fund projects about $661,468 in operating revenue.

The city is also adjusting how shared public works and administrative expenses are charged to enterprise funds. Gauthier explained that water and sewer employees are no longer budgeted separately and are instead grouped under the city’s public works operations, with utility funds reimbursing the general fund for shared services.

“Once we get through this next fiscal year and we have all the wrinkles ironed out, this will be a lot cleaner process,” Gauthier said.

Several expense categories increased under the proposed budget, including utilities, maintenance and equipment repair.

Gauthier said previous budgets did not fully charge utility-related electrical and gas costs directly to the water and sewer systems, including electricity used for pumps and operations equipment.

The proposed water fund includes about $56,000 for repairs and maintenance tied largely to wells, pumps and water infrastructure.

Discussion also focused on the city’s water supply system and the possibility of upgrading the city’s third backup well into a full-time operating well to improve reliability and maintain water pressure during maintenance outages. Biggs currently relies on two active wells, while the third is reserved for emergency use.

“That will give us a lot more basically backup supply, backup pressure,” Gauthier said.

Council members also discussed creating formal reserve and capital improvement policies to help fund future infrastructure upgrades. Officials said the city has historically lacked formal reserve policies governing how excess enterprise revenue is set aside for future needs.

The city’s sewer and water rate schedules reviewed during the meeting were previously approved and do not include new proposed increases this year, although Gauthier said both systems are approaching the point where updated rate studies will likely be needed.

“The city is due for a rate study,” Gauthier said.

Gauthier said the council is expected to review the city’s electric utility fund during the next budget session. He told council members the electric fund remains financially strained and currently lacks enough revenue to support major capital improvements without future adjustments.

“Electric doesn’t even have the money for capital improvement that it needs, let alone for the normal operating expenses it has,” Gauthier said.