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Llano officials outline $14 million water capital needs as rate increase debate intensifies
Summary
City staff and council described significant water-system needs and a rate-study proposal that would raise base charges and tiered rates to cover capital projects and meet bond covenants; residents urged caution and asked for alternatives including grants and micro-hydro revenue.
City staff and council members presented a water capital-improvement plan and a proposed rate package after repeated public comment opposing large increases. Staff said the water capital improvement plan (CIP) lists roughly $14 million in needed improvements; the rate-study work prioritized roughly $4 million of the most critical needs for the coming years.
Staff said operating expenses at the water plant increased about 38% over the last three fiscal years and distribution expenses increased about 66% over the same period (operating expenses, not salaries). By contrast, cumulative…
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