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Llano City Council adopts phased water-rate increase after lengthy debate, 4–1
Summary
After a multi-hour discussion about utility debt and future projects, the Llano City Council voted 4–1 to adopt 'scenario 6A,' a phased water-rate plan intended to reduce a projected operating shortfall while limiting the immediate burden on residential customers.
Llano City Council voted 4–1 to adopt resolution R2026-07, a phased amendment to the city's master fee schedule that raises water rates under a plan labeled 'scenario 6A.' The measure follows months of staff analysis and an extended public discussion at the Nov. 25 meeting about debt service, capital needs and rate design.
Finley, the staff finance presenter, told the council the utility (Fund 20) shows recent anomalies — including ARPA receipts and large capital projects — and that the water enterprise is projected to run a roughly $225,000 deficit in the current fiscal year under the baseline assumptions. “Even with an increase presented in scenario 6A, the city water revenue will be in a deficit to plan of approximately $300,000,” Finley said during the presentation.
Counc…
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