Board begins multi-phase discussion on Dixie Springs infrastructure, considers rate study

The board devoted significant discussion to failing infrastructure at Dixie Springs and the prospect of raising or restructuring water rates to finance repairs. Speaker 1 introduced the item and said the board had delayed a simultaneous rate and impact-fee discussion previously to avoid overloading the agenda. Operations staff (Speaker 4) said they had a rate-study quote coming and emphasized the need to balance revenue needs with protections for customers on fixed incomes.

Speaker 4 described options for base rates and tiered charges, and asked whether construction hydrometers and AMI metering should be tightened or monitored more frequently. "I've got Glenn writing up a quote for us to do a rate study," Speaker 4 said, adding that a phased approach might be preferable. Speaker 2 provided ballpark capital numbers: "We had the projects prioritized and how much we're gonna need about $12,000,000 to do the first set, and it's gonna be, I think, $24,000,000 total." Board members asked staff to prepare focused numbers for Dixie Springs (separate from system-wide needs) and to bring a proposal for board review at the next meeting or the next budget turnaround.

The discussion included repeated concerns about unmetered or malfunctioning construction meters, potential water loss rates historically reported near 21–22 percent, and whether dedicating staff to inspect meters would produce net revenue. The board did not vote on rate changes at this meeting but directed staff to assemble a rate-study scope, prioritize Dixie Springs repairs within a phased plan and return with cost estimates.