Council pauses proposed water and stormwater rate increases for further review

Council discussion on Sept. 11 focused on proposed changes to the city’s water and stormwater rates after a third-party study by Raftelis and the administration’s recommendation in Ordinance 2025-182. The measure would adjust water and stormwater fund charges to make those utilities financially self-sustaining and to accelerate meter replacements and water-line work.

Finance staff and department heads described infrastructure needs cited in the study: a program to replace aging water meters, a multi-year water-line replacement plan tied to break frequency, and a major capital need — a second elevated water tower that the administration estimates could cost between $17 million and $21 million. Service staff reported 68 water-line breaks so far this year, an 89% increase compared with the prior baseline, which officials said supports faster replacement if funds are available.

Councilors pressed staff on who would pay for the tower and whether the fee increases would specifically fund the meter program vs. large capital projects; the administration said the tower would be financed through debt borrowing and that rate changes help demonstrate the utility fund’s ability to repay debt. The council also discussed affordability safeguards: the administration proposed an expanded discount program for qualifying residents (from a current 10% discount to a proposed 15% discount for fixed-income or disabled residents) and noted existing local assistance programs for customers.

After public notice and consultant presentations, Council Member Fioka moved to table the ordinance to allow additional resident input and time for review; the motion carried and the ordinance will not proceed at that meeting. Council and staff said this deferral was intended to give residents time to review the consultant report and comment at a later reading rather than rush adoption.

Councilors described the proposed fee changes as necessary to keep water and stormwater funds solvent and to allow the city to replace failing infrastructure at a faster rate; staff said without new revenue the replacement program would be slower and the city would rely on grants and low‑interest loans. The administration noted the city has not raised water volume rates since it purchased the water program in 2001 and that the current proposal reflects the first general rate increase in roughly 20–24 years.