Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Rates topic
No spam. Unsubscribe anytime.
Riverton council asks staff to seek water-rate study, signals support for modest interim increase
Summary
City staff presented four interim culinary-water rate options and said it will seek a consultant to perform a full rate study. Council members expressed support for a moderate near-term adjustment to shore up the water enterprise fund and directed staff to return with more detailed modeling and an RFP for a consultant.
Riverton city staff told the council on Monday that the city is drawing down its water enterprise reserves and that a consultant-driven rate study is needed to recommend a longer-term structure. The council asked staff to solicit proposals for the study and signaled support for a modest interim rate change while the study proceeds.
Staff finance lead Nick presented four options ranging from a largely flat reallocation of the current tiered structure to combinations that modestly raise the monthly base charge and increase marginal rates for very large users. "We would like some guidance today," Nick told the council as he described revenue estimates tied to each option.
Why it matters: Riverton purchases large blocks of culinary water and this year exceeded historical consumption levels, which exposed the city to higher wholesale block charges. Staff said the city’s enterprise fund has been reduced by the higher wholesale bill and by unusually high usage; the shortfall prompted the request for a study. The consultant study will examine whether separate rates for different user classes (residential, PUD/HOA, commercial, irrigation) are appropriate.
Details: Staff quoted the city’s residential average at about 7,500 gallons per month and said the city serves roughly 11,000 accounts. The presentation showed four options: (1) retain current base rates and spread a 15¢ per 1,000-gallon increment evenly across tiers; (2) keep the current base and increase rates more steeply for very large users; (3) raise the monthly base by $1.50 and keep smaller-step consumption tiers; and (4) combine a base increase with steeper marginal rates for heavy users. Staff said all options keep Riverton among the lowest-cost nearby cities for a 7,000-gallon household, but the options diverge for very large users.
Council reaction: Council members generally favored taking some action now and commissioning the study. Council member Hammond asked whether homeowners who never connect to secondary water can stop paying the service fee; staff replied residents can apply to be classified as a non-user but must show a physical disconnection. Council member McDougall and others pressed for measures that shift more of the costs to heavy users; McDougall called for a structure that better ties payment to consumption.
Next steps: Staff will advertise an RFP for a rate study, aim to complete the consultant engagement later this year, and return with refined options and an enterprise-fund summary for the council. No rate change was adopted at Monday’s meeting; staff indicated it will bring a noticed rate adjustment back to a future meeting if the council wishes to act before the consultant’s final report.
