The City Commission adopted a multi‑year utility rate plan and related fee changes aimed at covering rising operating costs and funding critical water and wastewater capital projects. Commissioners voted 5–0 to adopt Resolution 2025‑R‑66, approving the annual utility rate schedule and associated fee changes, and later adopted a related fee ordinance on second reading.

Interim Utilities Director Tricia Wissner told the commission the department is responsible for roughly $315 million in buried infrastructure and a 10‑year capital improvement program the department pared down to about $276 million. Wissner said the system includes treatment plants that are several decades old and extensive mains installed in the 1980s. She said operating costs — chemicals, electricity, parts — are outside the city's control and the department has a 22% vacancy rate that is driving personnel costs.

Wissner and consultant GovRates explained the proposed financial package: a 10% increase in user rates for water and wastewater for each of the next three years, and increases to capacity (connection) fees. For a household with both water and wastewater, staff estimated the first‑year increase would raise the monthly bill by about $10.82; single‑service water customers would see about $4.52 a month in year‑one impact. The city’s current combined ERC (capacity) charge is $4,574 and staff proposed increasing it by $2,081 (to $6,655) to better reflect system costs and create capacity funding — the consultant said capacity fee collections are included in the financial forecast.

City staff said the 10% user rate package would generate roughly $4.5 million in additional revenue in year one before operating increases; after projected operating cost growth, about $1.5–$2 million would be available for capital projects in year one. Staff estimated average capital funding from the rate plan would be about $3.5 million per year over the early years of the plan; staff emphasized the increase is not a “silver bullet” but moves the city toward addressing deferred work and approaching regulatory obligations (the city is finalizing items tied to a consent order related to unauthorized discharges).

Commissioners asked for clarifications on where revenue would be applied, the impact of capacity fee revenue, and what parts of the capital plan might be delayed if rate increases were not approved. Finance and utility staff said without the revenue the city would defer additional plant and major replacement projects, increasing regulatory and service risk. The commission also voted to continue and adopt related fee ordinance language and to bring the capacity fee and miscellaneous fees forward for adoption.

Votes and next steps: the commission adopted Resolution 2025‑R‑66 by a 5–0 vote and adopted the utility fee ordinance on second reading by a 5–0 vote. Staff said the increases would be monitored annually and the plan reviewed during future budget cycles; staff will continue seeking grants and other funding to reduce ratepayer impacts.