Board hears multiyear water-infrastructure plan as consultant outlines phased rate increases

The Board of Public Works and Safety on Feb. 2 heard a detailed presentation on a multiyear water main and lead service-line replacement program and a consultant’s plan to phase in utility rate increases to pay for the work.

An agency official leading the project (Speaker 6) told the board the immediate focus is northern neighborhoods, including Office Park and the Beeson addition, where mains and in-home services are aging — some pipes date to the 1920s and 1940s. He said the work is driven by compliance with the federal lead-and-copper rule and that the city must inventory and address lead service lines on a timeline tied to an Oct. 16, 2024 inventory submission to the state. "We have 10 years to take care of any kind of lead ... It's a federal mandate," the speaker said.

The project scope includes main replacements, new isolation valves and actuating/backflow valves at the Park Road water plant, and a new booster station intended to improve pressure near the high school. The official described health and safety concerns with older materials, citing "Transite" (an asbestos-wrapped product) among legacy pipe materials and noting the hazards when such material is disturbed.

Adam, the city’s rate consultant (Speaker 7), summarized a 33-page rate study and said the recommended approach is phased and measured rather than an emergency one-time hike. He said the plan relies on a mix of grants, long-term financing using the state’s credit, and available cash to reduce borrowing costs. On the proposed schedule he told the board the first increase would apply to service dates after July 1, 2026, followed by adjustments in January 2027 and January 2028. "On a percent basis, it's about 15% this summer, 15% in January, 10% in 2028," Adam said, and estimated that for an average customer the total effect would be about "$5 more per month per year for the next 3 years."

Presenters listed targeted streets and priority areas and described multiple funding approaches. In the presentation materials staff referenced a lead service-line financing package described as two $2.5 million awards (described in the meeting materials as 0% interest) and SRF‑funded segments for other streets. Speakers said the city intends to use grant and subsidized loan funds first so available project dollars are not returned to the state.

Board members pressed for dates and clarity on the compliance timeline; the agency official said the inventory deadline was Oct. 16, 2024 and that the 10‑year clock is tied to that submission, but he said a definitive statutory start date would be confirmed. Members also pushed back on how prior costs had been absorbed; staff described sharply higher parts and service costs (examples given: a commonly used brass fitting up about 172%, fire-hydrant prices rising from roughly $2,000 to about $3,600) and rising insurance and energy expenses.

Presenters framed the phased increases as intended to avoid large, sudden hikes and to preserve local control of utilities. The consultant noted that the study modeled a cash breakeven (excluding depreciation) to limit rate pressure while delivering the identified capital projects. The consultant also said staff would pursue additional grants (materials referenced an "OCA" grant and SRF funding) and would present an ordinance to the city council later that night to implement the proposed rates.

What happens next: the consultant and staff offered to take follow-up questions from board members and the public; no formal vote on rate changes was taken at the Feb. 2 meeting. The consultant said an ordinance to implement the phased increases was scheduled for council consideration the same evening, and staff indicated they will return with firm financing details, final timelines and any additional grant awards.