City of Aberdeen’s council approved on first reading ordinance 25-12o4, a 13-page schedule of fees and charges for 2026 that staff said incorporates a 6% wage increase and multiple department rate changes.

Staff member Jordan told the council the schedule covers every department and that departments provided recommended rate adjustments “to align with these new costs,” including solid-waste, parking enforcement and building-permit fees, contaminant surcharges, and new fees such as an automatic fire-extinguishing-system charge and a $200 application fee for home day-care licensing. Staff recommended adoption of the fee schedule as presented.

The most substantive discussion centered on how the fee schedule and the Banner water and sewer rate study interact with a potential large water project (referred to in the meeting as the winds/web project). Jordan and a Banner representative, Tanya Miller, told the council the ordinance adopts Option 1 from Banner’s 2025 rate study. Miller told the council a rough repayment example from the study: “that rate would have to increase 47¢ per thousand gallons to be able to repay a 30 year loan of $10,000,000.” She added that larger projects would scale the debt-payment impact correspondingly.

Council members questioned timing and reserve use. One council member asked, “When is it appropriate to start giving money to pay that bill?” and suggested the city might consider reserving funds now rather than waiting for state or federal funding. Jordan said the water and wastewater reserve funds together are "about 15,000,000" (described as approximate and fluid because some money is already programmed for projects) and that the rate study aims to preserve reserve levels over a five-year plan rather than spend them down immediately.

Banner’s presentation included guidance on healthy reserve targets, noting a typical water/wastewater utility maintains reserves as a percent of operating revenue; Miller said the study’s targets were set slightly below typical ranges because of project unknowns and emergency contingencies, and that stronger reserves can improve bond ratings and borrowing terms.

Council members also asked which fees the city cannot change; Jordan noted that some fees—such as video lottery licensing and certain alcoholic beverage license fees—are set by state law and therefore beyond local control.

Staff emphasized that the proposed fee schedule attempts to phase increases to lessen customer impact and to reduce reliance on special sales tax funds that have been subsidizing water and sewer operations. Jordan told the council the city can adopt midyear rate increases if necessary.

The ordinance advanced on a roll-call first reading vote. Staff said more detailed line-item explanations are available on request because the full schedule runs to multiple pages. The first-reading approval means council will consider subsequent procedural steps before final adoption.