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Rexburg schedules Dec. 17 public hearing after finance staff recommends staged water and sewer increases
Summary
Rexburg staff presented a five‑year utility rate study and recommended phased increases for water and sewer to fund capital projects; council set a public hearing for 6:30 p.m. on Dec. 17 to take public comment on the proposed changes.
Rexburg’s finance director on Tuesday presented a five‑year utility rate study and told the City Council that the city must raise water and sewer rates to keep up with capital needs.
“Based on the revenue requirements, the recommendation for water is that we do an 8% increase effective 01/01/2026, and then we turn around in October … and do 6%,” said Matt Nielsen, the city’s chief financial officer, who led the presentation on a study produced with consultant FCS. Nielsen said sewer increases would be sized differently, with an 8% increase in January and another 8% in October under the current recommendation.
Nielsen said operating expenses are covered but the city’s capacity to fund capital improvement projects is eroding. The study used a five‑year (2025–2030) forecast and recommends a mix of rate changes and, if necessary, additional debt for large projects.
Council members asked staff for comparative data and concrete household examples of the impact. Nielsen said the study can generate example bills and gave a high‑level estimate that base residential charges would rise by roughly $1.78 for water and $1.47 for sewer under the proposed changes.
“[The study] is an incremental approach,” Nielsen said, arguing that staged increases reduce the need for large, single‑year jumps or reliance on more debt financing.
After questions from council members about fixed‑income residents and the cumulative percentage changes, the council voted to set a public hearing on the proposed water and sewer fee increases for December 17 at 6:30 p.m. That hearing will be the formal venue for public testimony and for staff to present bill‑impact examples.
The council’s action was limited to scheduling the hearing; no rate change was adopted at the meeting. Next steps described by staff include cost‑of‑service analysis, rate‑design review and publication of bill‑impact examples for typical residential and commercial users.
