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Dayton staff outline water, sewer rate changes and multimillion-dollar tower and treatment needs
Summary
City staff told the council that modest rate increases will be needed to keep water and sewer funds healthy and detailed major capital needs — including a $3.8 million northwest water tower and a $7.3 million wellhead treatment plant — while urging pursuit of state and federal grants.
City staff on Tuesday presented the Dayton City Council with a multi-year look at water and sewer finances and infrastructure needs, urging modest rate increases and continued pursuit of grant funding for large projects.
The presentation, given by staff member Amy, said the water fund is forecast to see a roughly $1.1 million net increase next year after accounting for depreciation and proposed capital. "As you can see at the bottom line, the net number, expected next year is about a $1,100,000 increase in the funds that likely will go right towards new capital," Amy said. Staff proposed a 4% water-rate increase for 2026 and a smaller 1% increase for sewer, with an intent to smooth increases over time rather than impose large hikes later.
Why it matters: staff emphasized that the city faces large, lumpy capital needs that make steady rate increases more manageable than sudden bond-driven spikes. The most immediate projects discussed were a northwest water tower (250,000-gallon) estimated at about $3.8 million once piping and connections are included and a wellhead treatment plant whose updated cost estimate is about $7.3 million. Staff noted the tower cost includes roughly $1 million for upgraded piping and connections that were not in earlier assumptions.
Council members pressed staff on alternatives, timing and grant prospects. Amy and other staff described active pursuit of state bonding and federal grant dollars: the city is on a state senate bonding tour Oct. 30 and has applied for roughly $2 million for the north tower and $4 million for the Willow Treatment Plant; staff said these awards would still leave local matches to cover. "We are on the state senate bonding tour ... and I think that 1, we have 2 I think it's 2,000,000, for funding from the state," staff said.
The presentation also addressed operational choices: whether to rely on developers for stormwater costs or to create a stormwater utility in future, and whether to buy land now to reserve sites for future towers rather than face higher land costs later. Staff recommended the council endorse searching for and securing potential tower sites now, even if construction remains years away.
What’s next: staff asked for general council direction to continue grant and bond applications, refine cost estimates and work toward a long-term schedule; council members asked staff to return with a clearer 2026 work plan tied to available funds.
