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Committee backs water, sewer and stormwater rate ordinance; impact fees to be updated, marketing plan ordered
Summary
The committee voted to send a water, sewer and stormwater rate ordinance forward to the full commission with a recommendation that initial implementation begin Oct. 1, 2025, and that impact fee adjustments for development take effect immediately; staff was asked to develop a resident-facing communications plan.
The Finance and Economic Resiliency Committee voted to return a water, sewer and stormwater rate ordinance to the full commission with a recommendation that the initial rate implementation start Oct. 1, 2025, and that water and sewer impact-fee updates take effect immediately. The committee also asked the administration to develop a robust public messaging plan explaining how proposed increases will finance capital repairs and resiliency projects.
City consultant Brian Mance of GovReach explained the case for the increases, saying rates “have not kept up with the actual inflation.” He outlined a multi-year funding path authorities say is necessary to back planned critical water, sewer and stormwater projects and to preserve the utility’s credit rating so the city can issue revenue bonds at favorable rates.
City staff and commissioners repeatedly flagged risk to grant funding and project schedules if the city does not show a viable funding plan. Public-works staff told the committee that design for large projects such as West Avenue Phase 3 and First Street were near completion and would likely be shelved if a funding plan were not approved; staff emphasized $67 million in state grants is contingent on moving projects forward. Commissioner Fernandez urged urgency: “be grown ups in the room and do what should have been done years ago.”
The consultant and staff described an implementation pathway that includes an immediate adjustment tied to previously planned increases, a pause for FY2026 calendar alignment, and continued annual adjustments in subsequent years. Staff said the combined water, sewer and stormwater increases under the recommended plan would remain below the EPA affordability threshold of 4.5% of median household income for water and sewer alone; staff estimated an average residential bill increase of about $10–$15 per month in the near term.
The committee approved the motion to return the ordinance to the commission, with a recommendation to implement the ordinance beginning Oct. 1, 2025 for monthly rates and to adopt impact fee adjustments for new development immediately. Members also instructed the administration to prepare a public communications plan describing projects and benefits tied to the revenue.
