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Gallatin consultants advise phased water, sewer increases to close shortfalls
Summary
A third‑party study presented to the Gallatin City Council recommends incremental, two‑year residential and commercial volumetric increases and higher customer charges for sewer to close a multi‑million‑dollar revenue shortfall tied to planned capital debt.
A Jackson Thornton consulting team told the Gallatin City Council Committee on Oct. 28 that the city's water and sewer utilities currently recover roughly 80¢ to 84¢ on the dollar of the systems' calculated revenue needs and face large planned debt service tied to upcoming capital projects.
Jackson Thornton summarized the water analysis, saying the water system's cash requirement is about $16.2 million, with roughly $850,000 expected from non‑rate sources. The consultants reported an 80% current recovery rate—about a $3.3 million shortfall—and recommended modest, phased volumetric increases over two years…
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