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City accepts water and wastewater rate study; public hearings and federal administrative-order submission planned
Summary
City staff and consultants presented a cost-of-service and rate-design study from New Gen Solutions; the commission accepted the study (not binding on rates), will hold public hearings, and plans to reference the study in response to an administrative order, with any rate changes proposed to take effect with the July 1, 2026 budget cycle.
The Truth or Consequences City Commission voted to accept a water and wastewater cost-of-service and rate-design study prepared by consultant New Gen Solutions.
Manager Whitehead told commissioners the study establishes baseline numbers to cover the utility debt load and that acceptance of the consultant’s report is an administrative step that does not itself change customer rates. "We'll conduct a couple of public hearings on the rate study. Our intent would be that, if the commission so chose to move to this particular strategy, that it be implemented in our new budget cycle so that it would become active July 1, 2026," Whitehead said.
Staff noted the city is under an administrative order from a federal environmental agency that requires an updated rate study; accepting the study allows the city to submit required documentation to that agency. Commissioners emphasized the need to consider softer phasing options and public input before adopting rate adjustments.
The commission approved a motion to accept the study and authorized staff to schedule hearings and follow the administrative-order submission process.
Why it matters: The study frames future utility rates and the city’s ability to cover debt and operating costs for water and wastewater services. Acceptance is the step that enables public outreach and, if adopted later, a rate schedule that could affect customers' monthly bills.
Next steps: Staff will hold public hearings, refine phasing options to mitigate impact on ratepayers, and submit the accepted study to the administrative order authority as required.
