Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities Rates topic
No spam. Unsubscribe anytime.
Smithville staff proposes 15% water and wastewater rate increase to fund multi‑year capital plan
Summary
At a work session, staff told the Smithville Board of Aldermen that a 15% increase to both water and wastewater rates is planned for FY2025 to fund large infrastructure projects, including a federally funded lift‑station, and to avoid near‑term COP issuance. Board members pushed for additional scenarios and cautioned against a single large one‑time hike.
City staff told the Smithville Board of Aldermen that staff is proposing a 15% increase to both water and wastewater rates next year to fund prioritized capital improvement projects and address inflationary cost pressures.
"We are proposing a 15% increase both in the water and the wastewater side," Speaker 3 said, framing the increase as necessary to begin tackling a multi‑year capital program. Staff removed COP proceeds and large reimbursements from the current-year revenue projections to make the fund performance more comparable and said postponing COP issuance for as long as practical saves taxpayers issuance costs and interest.
Staff pointed to major projects on the horizon. Speaker 3 said the capital improvement plan includes roughly $5.1 million in project expenditures tied to the 144th Street lift station, with an expected $1.5 million in federal funding. The combined multi‑year water and wastewater project list totals in the tens of millions; Speaker 3 said that, without rate increases or COP issuance, the fund balance could fall negative by about 2027.
Board members asked for multiple scenarios and pressed staff on alternatives. Speaker 6 asked whether a single larger increase (for example, a one‑time 50% increase) could avoid compounding annual hikes; other board members responded that such a large one‑time increase would likely be politically and practically untenable. "I was just throwing stuff out on the wall," Speaker 6 said; Speaker 7 warned a drastic single increase would provoke strong public opposition.
The board also discussed technical choices on projects. When Speaker 7 asked why staff were not pursuing gravity flow for the Smith's Fork force main, staff explained gravity would require much deeper excavation and crossing beneath the river and estimated that approach would be prohibitively expensive; staff said the near‑term plan is to install a parallel force main and repair the existing lateral.
Staff emphasized they will return in September with updated projections and alternative rate schedules. No final rate decision was taken at the work session.
Ending: Staff will produce multiple rate and cash‑flow scenarios before the board's September meeting; formal rate-setting and related ordinance readings would occur later in the adoption timeline if the board advances a change.
