El Paso Water Drafted Four Budget Scenarios for FY 2027-28
The utility is seeking public feedback on budget options that include project delays and workforce reductions.
Updated on Oct. 8, 2026 in Utilities
Live Poll
Do you support prioritizing lower water rates over increased utility infrastructure investment in your area?
El Paso Water has released four potential budget scenarios for the FY 2027-28 period as it seeks feedback on balancing utility costs with necessary infrastructure investment. The current annual budget for the utility sits at $1.2 billion.
Why it matters
Operators face potential shifts in service reliability and utility costs as the Public Service Board weighs options ranging from staff cuts to project deferrals. The process reflects a challenge in funding capital projects while maintaining affordability for local business customers.
The utility is evaluating budget scenarios that range from 27% below to 25% above its current $1.2 billion annual budget. Proposed Lean scenarios would delay 21 projects and cut 140 positions, while High risk options involve eliminating 300 positions and deferring work at four plants.
The players
El Paso Water
The municipal water utility serving the city of El Paso, managing water delivery, wastewater treatment, and stormwater infrastructure for local residents and businesses.
Public Service Board
The governing body responsible for setting policy, approving rate adjustments, and overseeing the fiscal management of the El Paso municipal utility system.
The details
El Paso Water has opted to present multiple strategic directions rather than a single budget, forcing a trade-off between near-term rate stability and infrastructure resilience. The Lean scenario requires cutting 140 staff members and stalling 21 projects to lower costs, while the High risk scenario mandates 300 job eliminations and freezes upgrades at facilities including the Pure Water Center. Operators should monitor which scenario is selected as it dictates future utility fee structures and project completion timelines.
Timeline
Community meetings are scheduled throughout El Paso in October 2026.
The budget planning process applies to the FY 2027-28 fiscal year.
Market Landscape
This budget process follows the investment patterns set by the 2024 El Paso Water infrastructure master plan requirements. The utility is currently working to align its operational spending with the long-term capital targets mandated by that previous policy framework.
Business owners should review these four scenarios to anticipate how utility fee adjustments could impact their operating costs in FY 2027-28. Monitor the upcoming public meetings to understand which projects are slated for deferral, as these delays may affect future water service reliability.
The takeaway
The utility is signaling a significant shift in its fiscal approach by presenting extreme trade-offs between staffing and capital project deferral. Operators should track the final board vote, as the decision will dictate both short-term service capabilities and future water infrastructure capacity.
Further reading
For more on local infrastructure and service costs, see the Utilities section.
More information
View the current financial proposals and planning documents on the EPWater budget information page.
Source note: This article includes information reported by El Paso Matters.
Live Poll
Do you support prioritizing lower water rates over increased utility infrastructure investment in your area?
