Green River workshop details $55 million water/wastewater plan; council hires HDR to assess tanks

Savannah Page, senior consultant with NewGen, told the Green River City Council at a workshop that a five‑year cost‑of‑service study projects about $55 million in capital needs for the city’s water and wastewater utilities and includes proposed multi‑year rate increases to cover those costs. The council on the same night approved a professional services agreement with HDR Engineering Inc. not to exceed $9,750 to perform a structural review of the city’s three water tanks.

The study, which Page said is a forecast for fiscal years 2026–2030, breaks the projected capital program into roughly $9 million for water projects and $46 million for wastewater projects, with about $50.5 million of that expected to be debt‑funded. Page said debt payments from those projects would begin in 2027. She said the study’s test year is the city’s adopted fiscal 2025 budget and that the net revenue requirement for the test year is about $3.1 million for water and $2.0 million for wastewater.

Why it matters: the study’s capital plan and debt profile drive the recommended rate changes, and the council must weigh rate affordability against the need to preserve reserves and pay debt service. Page said the proposed water changes are modest and phased, while wastewater increases are larger because of the upcoming indebtedness.

Key recommendations and numbers from the presentation: the study proposes raising the water minimum (base) charge by $1 per year for fiscal years 2027–2030 and increasing residential and commercial volumetric water rates by 7% per year for that same period. Page described wastewater as requiring steeper adjustments: she recommended a $3 annual increase to the wastewater minimum charge for fiscal years 2027–2030 and said the study supports additional volumetric increases. As Page put it, referencing prior and proposed changes, “it was a huge positive to do that 18% increase for fiscal year 26. 1 more of those is needed in 2027.”

Page gave illustrative bill comparisons: for a typical residential household using 575 cubic feet of water, she said the current water‑only charge is $33.32. She told the council that the combined residential wastewater‑related charges under the study rise from roughly $60 in 2026 to about $81 by 2030 under the proposed schedule.

Reserves and risk: Chris (acting city administrator) described the city’s reserves as intentionally kept “relatively low, under $300,000 in both cases,” and warned that such balances leave little room for capital emergencies. He cited a recent unplanned river‑crossing pipe failure, saying “that was almost a million dollars cost that we didn't anticipate,” to explain why some reserve cushion is prudent.

Billing methodology question: Councilman Williams raised the sewer billing winter‑average method used to calculate billed sewage volume and asked whether the city should follow the study’s recommendation to use a four‑month winter average and exclude high/low months. Williams argued the city should avoid billing sewer for water that does not enter the system, saying, “I would like to see council, address that issue because I think it's illegal, actually, in my opinion, that we bill somebody for water going down the street or on their grass.” Chris responded that changing how winter averaging is calculated would require an ordinance change and said staff can prepare that change if the council directs it.

Infrastructure contract: Mark Westlisco, public works director, reported that recent tank inspections flagged items that warrant a structural review. The council voted to enter into an agreement with HDR Engineering Incorporated to provide a rehabilitation feasibility review and authorized the contract with a not‑to‑exceed cost of $9,750. The motion to approve the HDR contract was moved by Councilman Bushman, seconded, and carried on voice vote.

Discussion versus decision: the rate study was presented for council consideration at a workshop and did not include a council vote on adopting new rates; the HDR engineering agreement was a formal council action and passed. Staff and consultants said the study is intended to inform a rate ordinance or rate schedule the council would consider later; the council also discussed potential ordinance changes for sewer winter‑averaging, which would require a formal ordinance process.

Next steps and context: Page said the study provides a five‑year revenue plan and bill comparisons to help the city assess fiscal sufficiency under current and proposed rates. The council’s approval of the HDR contract begins a targeted structural review of the tanks; staff indicated debt service for planned projects would begin in 2027 and that the council will need to balance rate impacts against the long‑term capital program. Staff also noted the city has previously run earlier rate studies and has phased some increases, which the new study updates.

For now, no rate ordinance was adopted at the workshop; council members may direct staff to draft ordinance language, an average‑usage policy change, or a rate ordinance for future public hearing and formal vote.