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Consultant tells Benton City council a multi‑year rate plan is needed to fix utility deficits; water could rise 12% in 2025
Summary
A consultant presented a 20-year water and sewer financial plan showing a 2024 water revenue shortfall of about $73,000, and recommended a multi-year rate plan (roughly 12% in 2025, then 9%, 7% and 4%) to meet operating needs, build 90‑day reserves and begin addressing capital needs.
BENTON CITY — A utility financial plan presented to the Benton City Council on Dec. 17 concluded the city’s water and sewer utilities need near‑term rate increases to stop tapping reserves and to build a modest capital fund.
Angie, a consultant with FCS, told the council the study models 2025–2030 fiscal scenarios and recommends a multi‑year package for water and sewer. “If we did absolutely nothing with rates we become more deficient over time,” she said, adding that a 12% water increase in 2025 followed by 9%, 7% and 4% would begin to correct an operating deficit and reach a 90‑day operating reserve target by about 2028.
The consultant said current water revenue is roughly $710,000 for 2025 under existing rates and that the city faced a deficit of about $73,000 in 2024; that shortfall could grow to an estimated $172,000 by 2030 if rates are not adjusted. For sewer, the consultant said existing debt obligations (about $155,000 in 2024) diminish by 2028 and that a planned low‑interest loan of roughly $1 million could allow the sewer utility to position itself to fund capital needs while meeting operating requirements.
Why this matters: the proposed increases are designed to shift the utilities onto a self‑supporting footing, meet reserve policy targets and begin funding capital projects such as reservoir and sewer repairs that the study estimates at roughly $3.4 million per utility in escalated dollars.
The presentation included sample bill impacts to give residents context. The consultant said the initial 12% water increase would translate to about $4.67 on a sample monthly bill (34‑inch meter, 1,000 cubic feet of water use) in the first year, with smaller dollar impacts in later years as percentage increases fall. For the sewer utility the consultant said the initial percentage would equal about $5 on the typical monthly residential fixed charge in year one.
Council members asked about the timing and the effect on residents on fixed incomes. One councilmember noted the combined utility increase could be about $11–$16 per year on a household bill and urged sensitivity for low‑income customers; the consultant recommended using the multi‑year plan as a tool to monitor and update assumptions over time and to seek grants where possible to delay capital cost impacts.
Next steps: the council did not adopt rates at the meeting. Staff said the analysis will be used to develop formal rate proposals and outreach materials for the council and public, and the city will return with options that reflect final budget decisions and any available grant funding.
