Consultant Proposes Three‑Year Utility Rate Plan to Restore Reserves; Council Asked to Direct Draft Ordinance

Ian Stallworth, manager at consulting firm Baker Tilly, presented a three‑phase rate plan the Columbia City Common Council on Jan. 13, 2026, asking the council to direct staff to draft an ordinance implementing the changes. Stallworth said the plan phases in increases from 2026 through 2028 that average 3.51% per year and equate to roughly $10 a month for an "average" residential user as defined in the report (4,000 gallons water/sewer usage and 1,000 kWh electric).

The plan is designed to address near‑term capital needs and to restore the utilities to required reserve levels under bond covenants. Stallworth said the study identifies about $13.6 million in capital needs tied to the four utilities: approximately $7.5 million for sewer improvements over a five‑year horizon, about $2.6 million for water capital projects, roughly $1 million for stormwater, and about $2.5 million for electric improvements. The presentation also emphasized that electric already meets reserve targets while some other utilities fall below required balances and would reach required reserves under the three‑year plan.

Stallworth and Brent Duncan walked council through comparative charts showing where Columbia City would sit among peer communities and called out assumptions underlying the average‑user calculation. They noted the plan assumes continued PILOT (payment‑in‑lieu‑of‑taxes) receipts in scenarios used for modeling and that capital estimates include contingencies for uncertain material and labor costs.

Council members and the utility rate advisory board discussed the distributional effects of the increases, whether alternatives could minimize impacts on households, and how the city’s decisions earlier to smooth rate changes influence the current approach. Laura Rich Creek, a member of the advisory board, recommended the three‑year $10/month annual increment as a careful balancing of expert advice and local budget pressures.

Mayor (unnamed in the transcript) asked the council for direction: whether to have staff prepare an ordinance based on Baker Tilly’s recommendations and the utility rate advisory board’s advice or to pursue a different path. The transcript records the request for direction but does not include a recorded final vote on drafting the ordinance in the provided segments.

Next steps: the council will need to state whether staff should draft an ordinance reflecting the consultant’s plan; if so, that ordinance would return for formal readings and a vote.