Osage Beach directs 2.5% utility rate increase, orders formal rate study

Osage Beach aldermen gave staff direction to proceed with a modest, preliminary utility rate increase and to commission a formal rate study to model multi‑year needs and capital plans. At the workshop board members agreed to a 2.5% preliminary increase for water and sewer while staff completes a formal rate‑study model and returns with dollar impacts and scenarios.

A utilities presenter told the board that past rate adjustments have sometimes combined base‑rate and volume changes inconsistently and recommended a standard practice of commissioning an independent rate study every three years with staff updates in intervening years. The presenter and several board members said deferred maintenance and an understaffed public works function have driven much of the recent rate pressure, particularly on the sewer side, which staff said recently experienced a large adjustment.

Board members urged a study that models expected capital needs (including a possible future water tower) and shows options such as pay‑as‑you‑go, bonding, or phased rate increases. The board also discussed using CIT (capital) dollars to smooth impacts and the need to show debt‑service capacity for any revenue bond proposals.

Staff said it will return with the rate‑study results and explicit dollar scenarios showing how 2.5% (and alternative) increases translate into revenue, fund balances and the timetable for capital projects; aldermen asked that the model show both the short‑term cash effects and 5–10 year capital planning implications.

The direction to the utility staff was recorded in the workshop but the transcript does not show a formal roll‑call vote; staff will include the 2.5% assumption in revised budget materials while completing a full study for the board.