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Hurricane City board approves 15¢ per 1,000-gallon wholesale surcharge to match water district
Summary
Board voted to add a 15-cent-per-thousand-gallons charge to match a wholesale increase from the regional water district; members also directed staff to model tier changes, noted Dixie Springs well progress and discussed using funds for failing infrastructure.
Hurricane City’s water board voted to add a 15-cent-per-1,000-gallon surcharge to the city’s water rates to match an increase adopted by the wholesale water district.
The change was approved after a motion, a second and a voice vote in which members said “aye.” Board members said the surcharge is intended to align the city with the district’s rate and preserve eligibility for future low-interest funding.
The board’s discussion focused on two immediate questions: (1) adopt the district’s 15¢ increase so the city’s billings match the wholesaler for the June/July billing cycle, and (2) continue staff analysis of the city’s tiered rate structure and how higher tiers, base rates and secondary systems should be adjusted later.
Board members and staff discussed timing and implementation mechanics. Staff described the implementation as an adjustment that would be applied across existing tiers and said the city’s base-rate inflation clause (2 percent) is included in the same resolution. The board directed staff to return with modeled alternatives for raising upper tiers and for adjustments specific to Dixie Springs once the new Dixie Springs well is online.
Board members emphasized that the surcharge alone will not cover long-term capital needs. The board discussed using the added revenue to shore up bond capacity and qualify for state financing programs. Participants described recent annual repair costs and said the city needs a multi-year plan of repairs, borrowing and conservation measures before pursuing major capital projects.
Staff said the effective date for the new wholesale surcharge will align with the district and appear on the July bill for June consumption. The motion passed by voice vote and the board chair ordered staff to place the adopted resolution on the city council agenda.
The board also discussed administration: staff said entering the 40+ rate schedules and tier levels into the billing system is routine but time-consuming; one staff member explained the team performs the updates annually and can add the 15¢ across tiers as the board directed.
Ending: The board voted to adopt the district-matching surcharge and directed staff to prepare detailed financial modeling and proposed tier adjustments for a later meeting, and to place the resolution on the city council agenda in time for the June/July billing cycle.
