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Middleton schedules Oct. 1 judicial confirmation for $78.56 million wastewater project; staff says stepped rate increases are needed
Summary
City staff told council a judicial confirmation hearing for approximately $78,558,000 in wastewater debt is set for Oct. 1, 2025. Staff summarized a prior FCS Group rate study that recommended stepped utility rate increases to cover debt service and noted staff are pursuing connection fee increases and impact fees to offset homeowner burdens.
Public works staff briefed the council that a judicial confirmation hearing to authorize city debt for the wastewater treatment plant expansion is scheduled for Oct. 1, 2025.
"We're looking at October 1 to go for the judge on the judicial confirmation for the treatment plant," Jason Fang (Public Works) told the council and asked residents to reach out if they wanted details about the financing or the process.
Fang said the city retained FCS Group for a rate study and that the study informed council action to raise utility rates in stepped increases to ensure revenues can cover anticipated debt service. "To put it in simplest terms, think of it as a very large mortgage...our utility revenues need to be at a level that we can afford to make those payments," Fang said. He said the council implemented large increases last year and is set to implement similar increases again this year to match the projected mortgage schedule.
Fang and other staff described efforts to reduce homeowner burden: raising developer connection fees nearly to allowable legal limits, exploring impact fees, and seeking partner funding sources to offset costs where possible.
Council members asked whether the connection-fee increases had been maximized and how the rate increases relate to capacity. Fang confirmed connection fees had been raised "to very nearly the maximum" allowed and said more customers do spread the mortgage burden but that the core driver for the plant is compliance with anticipated, stricter DEQ permit limits (not growth alone).
Public testimony included opposition to the rate increases. Tyson Sparrow, a resident, urged the council to reconsider or pursue bond measures or a public vote rather than raising rates and said higher rates impose hardship on seniors and fixed-income residents.
Council did not adopt a specific financing ordinance tonight but scheduled the judicial confirmation hearing and proceeded with related fee and budget items elsewhere on the agenda.
