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Assembly finance committee approves debt-plus-5% rate path for water and wastewater
Summary
After a detailed presentation and hours of questions, the Assembly Finance Committee voted 6–2 to move forward with a rate plan that combines low-cost state loans and annual 5% increases for water and wastewater to fund a reduced capital plan and avoid larger near-term rate shocks.
The Assembly Finance Committee voted 6–2 on April 30 to approve “scenario 4” for the city’s water and wastewater utilities — a package that combines state revolving fund (SRF) loans with annual 5% rate increases to cover a reduced capital-improvement plan and spread costs over time.
The committee’s action follows a presentation from consultant Paul Quinn and staff describing capital needs, projected operating gaps and multiple funding scenarios. Quinn said the reduced capital plan includes about $26 million in water projects and $39 million in wastewater projects over the multi-year study period, and that the utilities currently generate some annual cash flow but face a shortfall for average capital spending (roughly $4 million/year for water and $5 million/year for wastewater).
Quinn said the updated analysis lowered previously projected rate pressure slightly, but even the updated ‘‘cash-only’’ scenarios would have required double-digit annual increases for…
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