Council hears 10-year MUC capital plan, staff cites grants and low-rate financing for water and sewer work
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Summary
City consultant Greg Belcher presented a phased 10-year water and wastewater capital improvement plan including meter replacement and lead-service-line work; staff said grant funding and favorable financing are available and that rate increases would likely be phased.
Council received a detailed update on the Municipal Utility Commission'funded capital improvement plan for water and wastewater systems, with consultant Greg Belcher (Chapman Technical) outlining a three-phase, roughly 10-year approach and staff describing financing options to accelerate critical projects.
Belcher said the plan prioritizes water and wastewater plant work in Phase 1, followed by collection and distribution improvements in later phases. He reported that the city has sourced a mix of grants and low-interest financing for two immediate projects (meter replacement and lead service line identification/replacement) and described loan terms and grant forgiveness possibilities. Staff said the EPA'driven requirement for public water systems to identify pipe materials on both sides of the meter means the city must inventory service-line materials and that grant funds and 20-year financing are available to help cover costs.
Council members asked whether the utility will impose a single rate increase for all phases or step the increases. Staff and consultants recommended a tiered, incremental approach to smooth the fiscal impact on customers while allowing higher-priority plant work to proceed. One council member noted sewer rates had not been raised since 2012'2013, and staff said even with proposed increases the city's rates would remain below neighboring West Virginia and Maryland averages.
Key fiscal details mentioned in session: the consultant described project totals approaching tens of millions across the initiative and noted eligible lead-service-line funds and a financing package that can include grant forgiveness and loan terms; staff said two immediate projects were pulled out for earlier funding and expected financing to close by late summer. Council referred follow-ups and rate discussions to the Finance Committee for more detailed review.
Next steps: staff and consultants will return with refined phasing, rate scenarios and specific grant applications, and the Finance Committee will review detailed rate and financing options.
