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Rexburg council approves 8% water and sewer rate increases after public hearing
Summary
After a public hearing, the Rexburg City Council approved resolution 2025‑13 to raise water and sewer rates by 8% effective Jan. 1, citing a five‑year capital plan and depreciation needs; the change also affects treatment partners including Sugar City.
Rexburg — After a public hearing, the Rexburg City Council voted to adopt resolution 2025‑13, approving an 8% midyear increase to both water and sewer rates effective Jan. 1. City staff said the change is part of a five‑year plan to cover capital projects and asset depreciation.
Matt Nielsen, the city’s chief financial officer, told the council the rate study (prepared by FCS, part of the Bowman Group) was roughly half complete but recommended a midyear increase to avoid a larger single increase next fiscal year. “The increase is, for water, about 8%,” Nielsen said, adding the model anticipates subsequent increases next October (water 6% and sewer 8%) to phase in funding for planned improvements.
Why it matters: Nielsen said the forecast includes depreciation and capital projects, estimating millions in planned work over five years and the potential need to borrow for certain improvements. He explained the staged approach is intended to soften future rate shocks rather than wait until a large project forces a single steep hike.
Revenue sharing and interlocal partners: The proposed changes also affect nearby treatment partners, including Sugar City and Teton, because Rexburg treats some outside wastewater. Resident Eric Erickson asked whether Sugar City would pay the additional increases. Nielsen responded that Sugar City will pay its proportionate share for treatment and for shared infrastructure: staff noted a shared‑line replacement currently under way (a roughly $9 million project) that both jurisdictions are funding proportionately.
Public process and effect on bills: The council opened a formal public hearing, took neutral testimony and closed the hearing before voting. Nielsen said the rate adjustments would be effective Jan. 1 but that customers typically see the change on their February bills.
What’s next: With the council’s approval, the city will implement the changes and notify ratepayers; staff indicated it will provide comparative examples (residential, commercial, apartment) by email to illustrate the dollar impact. Any future adjustments will be reviewed annually as part of the normal rate‑setting process.
