Water and solid‑waste rates on track for FY26 review; town piloting utility discount program

Utility staff gave council an overview of the FY26 water and solid‑waste/recycling rate studies and described next steps for outreach and study. Rebecca explained the town’s three goals when setting utility rates: cover operating costs, fund current priorities (projects in the five‑year plan) and plan for future repairs and replacements through appropriate revenue and repair‑and‑replacement transfers.

Water: Rebecca said the town’s water asset base includes a large share of relatively newer PVC mains but noted an older portion of asbestos cement pipe (ACP) that staff proposes to replace under a 10‑year program (WA‑1597), estimated at approximately $273,000,000 to replace about 139 miles of ACP. The council discussed phasing, what could be deferred and the cash‑bonded rate path the council adopted in 2024 (a phased increase: 50% April 2024, 25% April 2025 and a projected ~25% April 2026). Rebecca said the town will start a formal rate study in summer and bring options to the PWAB and council in the fall and winter with a February 2026 adoption target and an April 1, 2026 effective date.

Solid waste and recycling: Yao described rising vehicle and equipment costs (side‑load trucks rising from under $300,000 in 2020 to about $500,000 in 2024), increased tipping fees (about 32% higher than 2020) and fleet replacement timing that constrained the number of replacements the town can afford in a single year. Staff said they are exploring a potential transfer station/MRF partnership with neighboring Mesa and will analyze those options before final rate proposals.

Utility discount pilot: Melanie reported the utility discount pilot launched after the 2024 rate discussion. The program uses 80% area‑median income (AMI) eligibility and auto‑qualifies applicants already on means‑tested programs (SNAP, Medicaid, WIC, free/reduced lunch). The pilot has 91 enrolled households and has provided about $4,000 in assistance to date; staff said they are considering raising the monthly discount and/or expanding eligibility (examples discussed included 125% AMI or targeted senior discounts). Staff will return with survey data and a recommendation on program design as they complete the rate study and outreach.

Next steps and schedule: staff will begin summer rate‑study work, do stakeholder outreach (HOAs and builders), present study options to the Public Works Advisory Board in the fall, and bring a public hearing/notice and final adoption schedule leading to a Feb 2026 council decision and an April 1, 2026 effective date.