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Committee hears utility rate review; sewer utility running a deficit, staff signals possible increase
Summary
Staff reported the water utility is roughly break‑even while the sewer utility is operating at a multi‑hundred‑thousand‑dollar deficit; committee discussed timing and magnitude of a possible sewer rate increase, with staff planning follow‑up to present concrete proposals.
Committee members on March 9 heard a preliminary utility rate review showing the water utility with a small positive net and the sewer utility operating at a significant negative net position.
Staff told the committee the water fund posted about $4.7 million in revenue for 2025 and a modest net income when interest income is counted, while the sewer fund currently shows an operating deficit (staff estimated approximately a $307,000 shortfall in recent figures). Staff attributed the sewer loss largely to higher payments to the Rim Mountain sewage district and the timing of capital projects. Committee members pushed for a prompt remedy; staff said they expect to pursue sewer revenue adjustments this year and suggested a phased approach rather than a single large increase.
As an illustrative example in the discussion, staff noted a roughly 12% sewer increase would move a representative 12,000‑gallon bill by about $10 per quarter (about $3 per month). No formal rate change was proposed at the meeting; staff said it will finalize year‑end numbers and bring a proposal to the board for consideration, likely later in 2026. The committee also noted the village sold (or is selling) a sewer asset (the vac truck) that would affect fund balances when recorded.
The committee did not take action on rates at this meeting; members emphasized the need for a careful review that accounts for ongoing projects, debt service and fund balance before setting a public rate proposal.
