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Council told residential water meters are undercharged; staff to return with fee proposal
Summary
City staff reported the current charge for 5/8-inch residential water meters is substantially below purchase cost and said a rate adjustment proposal will be presented at the next council meeting.
Milford City Council heard that the city is charging less than the actual cost for residential water meters and staff will bring a proposal to adjust fees at a future meeting.
The city manager told council staff had reviewed meter purchase and installation costs and found the city's current charge for the most common residential meter is well below the actual cost, producing a shortfall on each installation.
Why it matters: Meter charges feed into utility finances and recovering purchase and installation costs through fees affects both future customers and the utility fund.
City staff cited the 5/8-inch residential meter as the main example. In the packet the chart shows amounts described in the meeting: the city's current charge per residential meter stated in the materials as "$4.28 48" (as presented in the packet), an older city cost figure shown as $20.25, and a listed meter purchase price of $543.74 for the meters displayed on the left side of the attachment. Council members were told these figures show the city has been absorbing roughly a $100 shortfall compared with the charge collected and actual costs for the smallest residential meter.
The city manager said staff will prepare a formal recommendation for council to consider at the next meeting and asked council to expect an item returning for discussion.
No fee change was adopted at the meeting. Council asked no substantive amendments and directed staff to return with a formal proposal and supporting cost breakdown.
