Sanford delays utility-rate increase after residents report large bills from new meters; consultants warn of major capital needs

Sanford officials on Oct. 14 paused action on a proposed utility-rate increase after residents reported sharp bill increases following recent meter replacements and asked for a pause to gather more data.

Consultant Sean Ocasio of Raftelis Financial Consultants presented the utility rate study and reviewed the city's capital and operating pressures: construction material indices and chemical costs have risen sharply since 2019, and the city’s five‑year capital improvement plan has grown from roughly $85 million in 2019 to about $282 million in the current plan. Ocasio said the initial recommended option previously presented included a 9% water increase and a 6% wastewater increase for fiscal year 2025, and that sustaining the forecast would likely require increases over subsequent years through 2028.

Ocasio summarized tradeoffs: smaller increases now would require larger increases later or significant cuts to the capital plan; he said the program includes additional FTEs and regulatory projects (including a $1 million‑a‑year expected operating cost for a 1,4‑dioxane project). "The initial, actually the recommended option ... was a 9% increase on the water rate and a 6% increase in the wastewater rate for fiscal year 2025," he said during the presentation.

Residents — including a downtown resident who said her bill rose from an average of about $85 to $149.87 and then $192.71 after the new meter — urged the commission to wait. One resident said her first bill after meter replacement was more than 100% higher than normal and asked the city to analyze meter data samples across customers before adopting a rate change.

Brent Johnson, director of public works and utilities, and consultant staff agreed to assemble a representative sample comparing old‑meter and new‑meter bills and return that analysis. Following public comment, a commissioner moved to continue the rate decision for two weeks to allow staff time to present additional data; the commission approved the continuance to give staff the requested information.

The continuation leaves the decision open; staff said CPI‑based adjustments (about 2.9%) could be considered in the near term but the larger multi‑year trajectory will require more analysis and discussion. Staff also noted that meter replacements may change revenue projections (capturing previously unbilled usage) and that the final decision will balance rate recovery, capital needs, and customer affordability.