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City sees early warning from new Waterworth rate-modeling tool; council urged to consider 'micro adjustments'
Summary
Consultants demonstrated Waterworth, a dynamic rate-modeling tool for the city’s water and wastewater funds. The software uses real meter and accounting data to project operating expenses, capital needs and reserves to 2047; staff said it shows the city would miss its self-imposed 35% reserve threshold by 2031 if no adjustments are made.
The city heard a demonstration of Waterworth, a dynamic water and wastewater rate-modeling system, during the council meeting. Mr. O'Brien, the consultant presenting the product, said the tool uses real accounting and meter data to project expenses, revenues and rates into the future.
The system ‘‘allows us to dynamically do that and adjust the rate increases off into the future, real time,’’ O'Brien said, describing the ability to model stepped or smooth rate scenarios and to keep reserves within target bands.
Why it matters: the demonstration showed the council an illustrative projection through 2047. Using the city’s current assumptions, staff said the projection would not reach the council’s self-imposed 35% reserve threshold until 2031 if rates remain flat. Council members and consultants framed the tool as a long-range planning device to avoid sudden large increases later.
Council discussion focused on how the tool would be fed and how the city would act on the projections. O'Brien said the tool is being loaded with historical actuals from 2022–2024 and the adopted 2025 budget and that revenue and meter data would come ‘‘straight from our accounting system’’ and meter reads.
Mayor Pro Tem Saldana and others asked whether the tool’s inputs are simple uploads or a live feed; O'Brien said staff is ‘‘perfecting the method of keeping that evergreen’’ so the model can be updated monthly or quarterly.
Council member Reina urged caution about the charted “alarming” slope but expressed support for a phased approach to any rate changes. ‘‘We called it micro adjustments, and I’m okay with micro adjustments,’’ Reina said, indicating preference for incremental changes rather than a single large increase.
Staff said the city plans to use Waterworth ahead of next year’s formal rate study so council members can see multiple scenarios and options before setting rates. No action or vote was taken; the presentation was informational and staff said they will continue to refine the model and report back during the rate-study cycle.
The presentation included two named Waterworth representatives and city staff; council members asked for subsequent briefings that include dollar-amount examples and scenario comparisons.
