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Residents press council on rising water rates as staff reports Latham Springs production down
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Summary
Residents questioned planned increases in water rates and whether they will fall after infrastructure borrowing is repaid; city staff said the well and related infrastructure are financed over an extended term and reported decreased flow at Latham Springs, prompting a direction for staff to develop a restrictions plan.
At the public-comment portion of the Feb. 4 meeting and later during staff reports, residents raised concerns about rising water bills and whether rates would fall after new infrastructure is paid off. Kelly Nelson said the city’s top monthly base rate could approach about $60 and asked whether rates would return to prior levels after the well and infrastructure are paid.
Council and staff replied that the city financed water infrastructure with long-term borrowing. Scott said the principal borrowing and infrastructure needs are larger than some commenters had understood (staff noted figures quoted in public comment and clarified debt terms), and council members emphasized that any future changes in rates would depend on ongoing maintenance needs and future operating costs. The city indicated the current loan term is 20 years and that surplus revenue after debt service might be required for ongoing maintenance.
On supply, Scott and other staff reported that Latham Springs is producing less water than in past years. The city has pumped through winter months for the second consecutive year, increased pumping frequency compared with historical practice, and identified a need to repair a production leg and address surfacing issues. Staff said they will budget repairs and assess restrictions.
Council action The council asked Tom, the city’s culinary-water lead, to reach out to council members to develop a plan for restrictions and to report back at the next council meeting. No formal restrictions were adopted at this meeting; the item remains under development.
What residents were told to expect - Staff will present a water-restriction plan and recommendations at the next council meeting. - Rate increases were previously proposed after a multi-year water-rate study and public hearings; staff reiterated those public-notice steps and directed callers to the city newsletter for details.