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Staff previews rate design changes to cover capital needs, proposes modest minimum bill increases
Summary
Staff said planned capital spending (about $120M in debt obligations) and rising construction costs are driving a proposed modest increase in minimum monthly bills and commodity charges; staff expects the combined proposal to raise roughly $1.18M annually for water and sewer.
Valerie (with support from Doug) presented a rate‑design review explaining drivers for a proposed set of modest increases to water and sewer customer bills. The work is intended to help fund roughly $120 million in planned debt for capital projects including the Cherry Lane corridor and upgrades to solids processing equipment.
Staff summarized recent usage and growth trends: water consumption has been relatively flat while sewer billing has grown (about 12.3% growth over five years, reflecting service in the Consolidated Utility District area). The board was shown a proposed increase of $0.25/month to residential minimum bills and modest commodity‑charge changes (e.g., a $0.05/1,000 gallon change described in staff tables). Staff estimated the combined effect of the proposed minimum and commodity changes would be approximately $1,180,000 in additional annual revenue between water and sewer.
Staff said they are continuing the practice of maintaining operating reserves (roughly 12 months of secured operating expenses for water and sewer) and will present final rate proposals through the budget process and the pending cost‑of‑service study.
