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Candidates debate water/sewer debt, connection fees and possible revenue options
Summary
At the forum candidates discussed Fund 9’s debt stress — presented in the forum as roughly $4.09 million in annual debt service — possible rate increases, wholesale water sales to Aberdeen and alternatives such as developer front‑funding and volume agreements.
Candidates at the OPEC forum addressed the city’s water and sewer finances after the moderator read figures from the annual report indicating approximately $4,090,000 in combined annual debt service for the water and sewer fund (Fund 9), including roughly $2,600,000 annually tied to the wastewater treatment plant and $1,300,000 in annual debt service related to a $15,000,000 infrastructure bond.
"With fund 9 being at maximum debt capacity, rising inflation costs, downturn in new housing construction ... how will you explain to citizens a proposed rate and fee increase to cover the debt and operating costs?" the moderator asked.
Candidates gave several recurring responses: be transparent with residents, seek alternative revenue sources, press for grant funding and consider creative partnerships with neighboring jurisdictions.
Liz Clark and others emphasized the need for transparency and community engagement. "Dealing with honesty ... is what our constituents want," Clark said. Several candidates pointed to the city’s sale of water to Aberdeen as a potential revenue source. Johnny Boker told the audience the city is already selling about 500,000 gallons to Aberdeen and that wholesale sales could offset operating costs.
"With upgrades to the system, we could bring that 20 to 30% loss way down, which now gives us 10 to 15% income by doing nothing but upgrading our system," a candidate said when summarizing the case for reducing leakage through infrastructure investment.
Suggestions also included asking developers to front‑end costs for new service connections; one candidate proposed negotiating discounted wholesale prices with Aberdeen in exchange for infrastructure investment. Several candidates said bond markets and state bond availability (one candidate said the bond market was constrained until 2028) will affect timing of major borrowing.
Multiple candidates said questions about line items and special events revenue are appropriate for council budget work sessions, where members can request detailed breakdowns and ask for alternatives to rate increases.
No candidate proposed a final revenue plan; instead the forum produced a set of options the next council could pursue: increased transparency about Fund 9, exploring wholesale water sales and volume agreements, pursuing grants and creative developer arrangements, and studying leak reduction and infrastructure rehabilitation.
