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Service director lays out multi‑year water and sewer rate increases to cover $18M–$28M capital projects
Summary
Canton’s service director told council the city must raise water and sewer rates over the next three years to cover major capital needs — including an estimated $18.4 million galvanized service‑line replacement and roughly $28 million in wastewater membrane work — while keeping Canton’s rates below recent state averages.
The city’s service director presented a detailed utility finance briefing and recommended multi‑year rate increases to stabilize water and sewer funds and pay for large capital projects.
In a presentation to council committees, the service director said the city’s average monthly combined sanitation, water and sewer bill was $66.44 based on recent actual use and that sanitation needs only a small CPI‑based increase. By contrast, water and sewer require larger changes: the director outlined a first‑year water increase the presentation characterized as roughly a 15% adjustment in one scenario, followed by smaller increases in subsequent years, and a sewer increase that would raise average monthly sewer charges by about $3.00.
Why the increases: the presentation tied the higher rates to several specific projects and cost drivers. The city estimates it must replace about 4,000 galvanized service lines—“ballparked” at $18,400,000—because of new federal/administrative requirements. At the wastewater plant, staff said membrane replacement will be a four‑year effort and estimated at about $28,000,000. Additional capital needs named in the presentation included a $5,000,000 raw‑pump replacement, electrical improvements, and ongoing sewer rehabilitation required under a U.S. EPA administrative order of consent.
The director framed these steps as necessary to avoid fund insolvency: if the city applied CPI increases only, the water fund would be exhausted by about 2029, and earlier, smaller projections showed similar risk for the sewer fund. Under the recommended multi‑year increases the projections show the funds stabilizing so operations and capital work can continue.
The presentation also compared Canton’s projected 2026 bills with 2023 state averages and nearby cities, noting Canton’s projected numbers remain below those older state comparators (for example, Canton’s projected water comparison was $23.43 versus a 2023 state average of $40.11 based on the EPA report cited in the presentation). The director repeatedly framed Canton’s rates as relatively low compared with peers while acknowledging the increases are difficult for customers.
Council members asked follow‑up questions about timing and cash availability for specific projects; staff noted some appropriations remain to be finalized and that several large projects will appear on second reading in coming weeks. The director said project funding includes a mix of grants, loans and rate revenue and that delaying some projects risks losing grant funds.
The presentation closed with a schedule for proposed increases and a reminder that staff will return with specific appropriation ordinances and second‑reading items for council consideration.
Sources: presentation and Q&A with the service department (service director) and related committee discussion.
