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The Common Council reviewed proposed 2026 sewer service rates on Nov. 6. Councilors questioned the magnitude and drivers of the increases and sought clarification on class definitions and whether the utility's payment in lieu of taxes (pilot) was tied to rate changes.
Director Tillis explained rate-setting practice and class definitions: "class 2 charges are our industrial customers. Class 1 are our residential customers," and described the utility's revenue projection process, saying "the utility is not allowed to make a profit" and that projected flows and operating expenditures drive rate adjustments. Councilors noted the documents showed a 3.1% change for class 1 rates and a 4.5% figure for class 2.
Alder Weidner asked whether increases were related to the utility's pilot (payment in lieu of taxes). Tillis replied the pilot is paid by the water utility and that it "doesn't have anything to do with this rate increase." The provided transcript does not include a recorded vote tally for the sewer rate item.
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