Willard staff offers 10–20% rate scenarios to fund lift-station, lagoon closure and other water projects

Willard utilities staff presented a multi-year financial forecast and four rate-increase options — 10%, 12%, 15% and 20% — to help fund required water and sewer projects including an upgrade to the 94 lift station, the Meadows connection to Springfield, closure of the lagoon system and future well and storage-tank work.

"I put 4 different rates, 10, 12, 15, and 20," Director Carolyn said while presenting the analysis developed with engineer Alger Martin and Associates. She showed charts comparing projected revenue under each rate scenario to expected expenses and said a 10% or 12% increase would leave revenue below expenses and continue to draw on reserves, while 15% comes close to balance and 20% projects revenue above the expense line.

Carolyn said the lagoon closure is anticipated because of EPA requirements and that near-term capital needs include a larger pump configuration at the 94 lift station and upsized discharge piping. The staff presentation included multi-year cost estimates: the presentation referenced a total project package of roughly $5,800,000 and indicated the city would likely need to identify about $2.9 million in additional funding during 2026, with a separate Meadows project cost cited at about $1.8 million. Staff said some project costs would be financed short term as they are incurred.

The analysis assumes a 1% customer growth rate; staff said modest growth would help spread the cost but the forecasts do not rely on significant near-term growth. Carolyn also noted that many grant programs require local matches (for example, an 80/20 structure was referenced) and that having reserves increases the likelihood of accepting grants.

Committee members discussed alternatives including phase-in increases, year-by-year decisions, and municipal bond financing for major projects. Members said bonds can lower long-term borrowing costs if the public supports them, but they require demonstrable progress to secure voter trust. Staff said it prefers to present a recommended option year by year rather than propose a long-term escalation schedule.

Trevor, a staff member, reviewed completed capital work since May — Jackson Street (upgraded to an 8-inch loop and added a hydrant), Langston (replaced roughly 400 feet of 2-inch galvanized with 6-inch line), meter replacements and sewer patching work — and described ongoing infiltration & inflow (I&I) investigations using camera footage and targeted repairs.

Staff asked the advisory committee to solicit public feedback and said staff will present the rate options to the city board for formal consideration on Oct. 27 and that a public hearing is planned for Dec. 8 to receive customer comments. Staff also said mail inserts and bill notices will provide updated information ahead of the hearing.

No formal advisory vote was recorded at the meeting; staff sought input and will return with a narrowed recommendation after public outreach.