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Council reviews water finances and Storm Haven needs; rate options, capital gap discussed
Summary
Council received a multi‑year financial review showing the municipal water fund has covered operating expenses but lags on depreciation; Storm Haven’s system was estimated to need $3–5 million in capital work, and staff presented rate scenarios (example: raising base from $35 to $50) that would increase annual revenue by roughly $27,900.
Town staff presented a 10‑year financial summary for the Town of Daniel water systems and an analysis of Storm Haven’s water system on Sept. 8. The packet showed the municipal water fund has generally covered operating expenses but that accumulated depreciation (nearly $936,000 over the period presented) exceeds current reserves; the Storm Haven system’s depreciation and capital needs are much higher relative to its customer base.
Staff said Storm Haven’s system would require an estimated $3–5 million in capital work; USDA and other grant programs were discussed as potential sources, but grant eligibility can require a local rate structure and customer contribution. The packet showed Storm Haven customers average about $59/month; staff said for some grant programs the program looks at average customer cost as a percentage of income when considering eligibility.
As an illustrative option, staff showed a base-rate increase example that would raise the municipal base from $35 to $50 per month; with approximately 155 connections, that $15 increase (per month) would produce roughly $27,900 in additional revenue annually. Council emphasized the need for careful public engagement and noted the town has not consistently raised rates (staff illustrated a 3% annual increase that would have led to a current base near $56). Councilors urged pursuing grant funds, preparing clear community outreach, and developing a multi-year funding plan rather than abrupt increases.
Next steps: staff to continue grant research, produce more granular monthly cost and CMC (large user) analyses, and prepare public-facing materials and a potential community forum before any rate change.
