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Kanarraville board backs institutional water rate, agrees to phased $3 base increase
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Summary
After a multi-hour review of the town’s water master plan and financing options, the Kanarraville Town Board approved a motion to create an institutional water rate, require all connected meters to pay a base, and implement a $3-per-month base increase annually for five years as staff prepares a public hearing and final budget figures.
Kanarraville — The Kanarraville Town Board on Jan. 22 considered alternatives for paying for long-term water-system improvements and voted to create an institutional rate and phase in a base-rate increase intended to build a repair-and-replacement fund.
Board members reviewed Sunrise Engineering’s water master plan and debated whether to pursue a 400,000-gallon concrete tank, a 200,000-gallon steel tank or a phased approach. Staff noted the town is roughly 23,000 gallons short of the storage engineers recommended; members discussed trade-offs including upfront cost, excavation complexity and long-term maintenance.
Janelle (Speaker 8), who presented rate models and spreadsheets, showed how a modest $3-per-month increase in the base charge — applied each year for five years — would create a predictable reserve the town could use to reduce borrowing needs for a future tank or other capital work. She also modeled scenarios including tier changes and an institutional rate for nonprofit and municipal accounts.
Concerns about affordability and revenue stability were raised. Speaker 5 said he did “not want to see water rates an average of $91 a month” and cautioned against overly aggressive increases. Board members also discussed operational drivers, including unusually high peak electricity charges since tying in a new well and the need to investigate SCADA/electrical issues.
After discussion, Speaker 5 moved to implement an institutional rate, require that all connected water meters pay the base rate, increase the residential and commercial base rate by $3 per month, and continue that $3-per-month rise each year for five years. Speaker 8 seconded the motion. The board voted in favor and the motion passed; the chair directed staff to schedule the required public hearing and incorporate the change into the FY 2026–27 budget process.
Board members also asked Sunrise Engineering to correct identified typos and mapping errors in the water master plan, and to provide updated cost estimates that include steel-tank options and clearer hydrant and distribution-line data. Staff said they will request amended charts, seek quotes to update the plan if needed, and pursue GIS mapping of utilities to ensure the town bases future decisions on verified field data.
The board’s motion establishes a policy direction rather than immediately setting final rates: formal public-notice requirements and a hearing will precede rate adoption. Staff will return with corrected plan materials and specific ordinance language and timeline for the public hearing and final vote.
What’s next: Staff will request a revised master-plan scope and corrected maps from Sunrise Engineering, schedule a public hearing per state notice requirements, and present final ordinance language and a fiscal impact summary before the board adopts any ordinance changes.