Wetumpa Water Board approves $16.57M budget, sets water rate at $4.41 per 100 cubic feet

The Wetumpa Water Board voted to resubmit a $16,571,442 budget to the city council and approved a water rate of $4.41 per hundred cubic feet at its meeting.

The action follows the city council’s direction that the previously approved budget was not acceptable, prompting board staff to revise the proposal and cut capital and personnel items to lower the projected rate increase. President Terrio, president of the Wetumpa Water Board, called for the motions; the board approved both the revised budget and the $4.41 rate by voice vote.

The administrator of public utilities (name not specified) told the board the original consultant recommendation called for larger increases. “The original proposed rate increase was 34¢. So it was from $4.34 up to $4.58,” the administrator said, describing how the board and staff reduced planned capital spending and personnel costs and applied part of a legal settlement as revenue to lower the rate. The administrator said the board included $200,000 of a projected $293,000 settlement payment from Westport as budgeted revenue for fiscal year 2026.

Staff presented estimated customer impacts: a 17¢ increase in the water rate translates to about $9.01 per year for the average household for water alone, and the combined water-and-sewer effect is about $25.97 annually (a 2.9% increase on the total bill). The board noted a quarterly increase of about $2.24 for the average bill. The administrator also said the original four-year plan included 5% annual increases to both volumetric rates and the base meter fee, a plan that was scaled back in the revised proposal.

Board members and staff cautioned that the cuts carry trade-offs. President Terrio warned that reducing capital and using settlement and reserve funds to balance the budget could jeopardize long-term fund stability and future grant competitiveness: “Not following their advice and reducing the amount that we increase definitely puts that in jeopardy,” the administrator said, explaining the consultant’s intent to build retained earnings and stabilization. Board discussion referenced recent reductions in federal and state grant availability and said Wetumpa has relied on grant and ARPA funds in recent years for major projects.

The board passed two motions: to resubmit the revised $16,571,442 budget to the city council and to set a water rate of $4.41 per 100 cubic feet. Both motions were seconded and approved by voice vote. The administrator and board members said they may return to the council and the board during the fiscal year if unplanned capital needs arise or grant funding does not materialize.

The board did not specify an implementation date for the new rate in the meeting record provided; staff said rates remain governed by ordinance and that the revised budget will be forwarded to the city council for final action.