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Elgin council authorizes utility rate study to inform budget and rate structure
Summary
Council authorized staff Feb. 17 to negotiate with a selected firm to conduct a utility rate study for water and wastewater service; staff said six firms responded to the RFQ and the study is intended to provide data for the upcoming budget and possible rate structure changes.
The Elgin City Council on Feb. 17 approved a resolution directing staff to negotiate an agreement for a utility rate study to evaluate water and wastewater rate structure and provide data for the city's upcoming budget work.
Michael Gonzales, public works director, said the study will benchmark Elgin's rates against similar organizations, evaluate tiered billing and the impact of industrial users, and incorporate capital improvement plan projections. Staff said six firms responded to the city's RFQ and presented a ranked recommendation to council.
Council expressed support for an expedited study so some data would be available for summer budget planning; staff said a final product may not be complete by budget adoption but that initial information would be provided to guide decisions. Kuznovsky moved to approve the recommendation; Gibson seconded and the motion carried with an affirmative roll call by council members present.
The study will return findings and recommendations to city leadership and the council, potentially informing rate adjustments or structural changes to billing for different customer classes.
