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Meridian staff recommend phased rate shift ("9‑4‑3‑1") to shore up water and wastewater funds; public hearing set for mid‑December

Meridian City Council · November 13, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Director Lorelei McPhee told the council that Meridian’s enterprise fund is healthy but the water subfund needs adjustments; staff recommended a gradual ‘9‑4‑3‑1’ plan that would shift more costs to fixed base charges over time, modeled to average a ~2.6% effect to customers and a one‑time average monthly change of about $1.66.

Director Lorelei McPhee presented an enterprise fund health check and a proposed multi‑year rate‑structure adjustment to the Meridian City Council on Nov. 12, saying the city’s utilities currently have among the lowest monthly rates in the Treasure Valley but that the water fund in particular needs revenue adjustments to remain solvent over a multi‑year horizon. "We are the lowest rates in the Treasure Valley by a lot," McPhee said, but added that modeled projections show the water fund will require changes to remain balanced.

McPhee summarized a 2024 cost‑of‑service study that found the city’s current methodology is legally defensible and predictive but recommended adjusting how costs are allocated between base (fixed) charges and use‑based charges.…

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