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Council, staff outline water needs as residents warn rate hikes would strain households
Summary
City staff presented a water capital improvement plan and proposed rate changes to cover operating deficits and debt covenants; residents and local stakeholders urged more communication, slower pace, and alternatives such as grants or micro-hydro generation.
City finance and operations staff described rising operating costs, a multi-million-dollar capital improvement need and a proposed rate package as the City of Llano considers how to pay for water-system upgrades. Cara (interim city manager) told the council that over the past three fiscal years the city has seen about a 38 percent increase in water-plant operating expenses and a 66 percent increase in distribution operating expenses, while cumulative rate increases totaled roughly 16 percent. “At a minimum, there would have to be some sort of a rate increase to meet this obligation,” she said, noting the city currently fails a bond covenant and that the water capital improvement plan…
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