City moves to publish notice of intent for 13% water‑rate increase in FY26; public hearing set for May

The Kingman City Council voted March 18 to publish a notice of intent and schedule a May 20 public hearing on a recommended 13% water‑rate increase for fiscal year 2026, a staff presentation showed.

Why it matters: City staff update the water‑rate study annually to ensure revenues cover operating costs, capital needs and a 60‑day cash reserve. The fiscal‑year‑2025 update identified unexpectedly high electric costs and overtime that shifted revenue sufficiency assumptions.

What staff reported: Utilities staff said electricity costs for water operations rose about 30%, increasing expense projections by roughly $780,000. That unexpected cost increase—coupled with higher overtime related to unplanned water‑line leaks—drove the recommendation to proceed with the planned multi‑year rate schedule the council adopted last year and to continue the FY26 increase of 13%.

“Last year, if we look at what the rate increases were gonna be year over year, fiscal year 25 was 26.5% … fiscal year 26, in order to continue to provide all of the monies to fund our operating and maintenance expenses … it is a 13% recommended increase for fiscal year 26,” Utilities presenter Tina Moline told the council.

Council discussion: Council asked why neighboring cities show lower or higher rates; Moline said systems and infrastructure age vary and that some nearby systems (for example, Bullhead City after acquiring a private system) may need future increases. Council Member Walker moved to adopt the notice of intent; Council Member Savage seconded. The motion passed by voice vote.

Next steps: Staff will publish the notice of intent and hold the public hearing on May 20. If the council approves the increase after the hearing, the new rates would become effective July 1, 2025.

Ending: The water‑rate study will be updated and returned with public comments for council consideration at the May hearing.