Grants Pass council adopts phased water-rate increase to shore up financing for replacement treatment plant

Grants Pass City Council voted 6-1 on Nov. 6 to adopt a phased water-rate increase intended to improve the city's coverage ratios and support debt service on a replacement water treatment plant.

Jason Kenney, a staff member presenting the proposal, told the council the city had previously approved a guaranteed maximum price for the replacement plant and a tentative financing plan but lost an anticipated FEMA BRIC grant and therefore must borrow more to complete the project. "Adoption of the GMP provided council with cost certainty and locked in pricing on over 90% of the project," Kenney said, and the loss of the BRIC grant "eliminated $50,000,000 of funding" and increased the need to adjust rates.

Kenney said staff and the city's rate consultant developed three scenarios that combine changes to the base and commodity rates, a treatment-plant replacement…