Henderson council adopts utility rate adjustments and system development charge changes

The Henderson City Council voted to adopt proposed changes to potable, reclaimed, raw water and wastewater rates and to revise system development charges based on an updated cost-of-service study presented by Priscilla Howell, director of utility services.

Howell told the council the utility systems are valued at more than $4.4 billion and operate continuously; the proposed changes are intended to keep the utility funds financially sufficient and to maintain service levels. She said the proposed structure would align nonresidential meters with residential meter treatment beginning Jan. 1, 2026, and implement CPI-based annual increases to most rate components starting the same date.

Howell said the recommendations include annual CPI adjustments to fixed and variable components, a multi-year phase-in of approximately 3.5% for water and about 4% for wastewater over the coming years, and annual CPI indexing for raw and reclaimed water rates. She noted the system development charge increases would be spread over multiple years to ease the burden on new development.

Councilman Dan Stewart moved to approve the rate changes and related updates; the council approved the motion by voice vote and it carried.

The adopted adjustments are designed to preserve enterprise-fund sustainability (the water and sewer funds do not receive general-fund property-tax transfers) and to fund capital investment needs for aging infrastructure. Staff said the finalized 2026 rates will be set after CPI values and final calculations are available in approximately six weeks; tables presented at the meeting showed estimated rates and billing examples for certain meter sizes.

Next procedural steps: administrative implementation of the adjusted rate schedules and publication of final 2026 rates once CPI and final modeling inputs are confirmed.