Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utility Finance topic
No spam. Unsubscribe anytime.
City manager warns of steep utility rate increases as council approves appropriation changes
Summary
City manager reported utility funds are in poor condition and said large rate increases or alternative funding will be needed; council approved a multi-fund appropriation amendment and several capital adjustments including park splash‑pad repairs and irrigation bids under review.
City Manager Greg Gunderson told council on July 15 that Milford’s utility funds are in “really poor standing” and warned that the city will need significant rate adjustments, grants or loans to support infrastructure projects. Council approved an appropriation ordinance that reallocated funds to cover multiple capital needs and operational adjustments.
Gunderson said the utility rate study consultants will present their findings in August and that the city faces a choice between large rate increases to cover capital projects or stabilizing rates while relying on grants, loans and general‑fund subsidies for major infrastructure. “We are going to have to increase the rates drastically, and we're still going to have very little revenue,” he said, urging council to study the utility presentation before final decisions.
Council approved the third appropriation change of the year, moving budget lines for new staffing models in planning and zoning, and converting an earlier ‘advance’ into a proper transfer to the park fund for a downtown park project. The council also authorized staff to seek two irrigation bids (5 Points park) and accepted a splash‑pad surface replacement estimate of roughly $35,000; Gunderson said staff would pursue park grants to offset those costs.
Gunderson also reported that the water tower improvement project will be billed incrementally and grant proceeds can be requested to match invoices rather than pre‑transferring the full $3 million, a procedural clarification that reduces short‑term cash strain. Council approved the appropriation ordinance changes and asked staff to provide the utility rate study presentation in advance of the August meeting so council can review options.
