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Waterloo committee backs 2.62% CPI-based water and sewer rate adjustment
Summary
The Waterloo water and sewer committee recommended the city council approve the annual Consumer Price Index adjustment of 2.62% for water and sewer rates, a modest rise that increases a typical 6,000-gallon water bill by about $2.39 per month and sewer by about $1.37 per month; water changes apply to March billing and sewer on May 1.
The Waterloo Water and Sewer Committee recommended the city council approve an annual Consumer Price Index (CPI) adjustment of 2.62% for water and sewer rates, producing a favorable recommendation by voice vote.
The committee’s chair said the ordinance calls for an automatic CPI adjustment and that this year’s 2.62% change is handled per the ordinance. “This year is 2.62,” the chair said, noting last year’s increase was 2.59%.
Under the examples the committee discussed, a 1,000-gallon minimum user would see a monthly water charge rise from $15.00 to about $15.39 (roughly $0.39). A 6,000-gallon water user would see a monthly increase from $91.75 to $94.14, roughly $2.39. For sewer, the chair said the CPI change raises the first 2,000 gallons by about $0.49 and moves a 6,000-gallon customer’s monthly sewer bill from $51.99 to $53.36 (about $1.37 per month, or $16.44 per year).
Committee members asked about the ordinance language and whether the jurisdiction could decline to apply the CPI in a given year. The chair said the ordinance reads in mandatory terms and that changing course would require amending the ordinance. The chair also linked the CPI clause to past financing, saying the city’s inclusion of CPI adjustments in its ordinance helped secure favorable loan terms on a $35 million plant project and contributed to roughly $1.4 million in loan forgiveness.
One committee member cautioned that CPI-based adjustments can diverge from the utility’s actual cost to produce water over time and urged continued monitoring. “We need to make sure that that stays fairly narrow,” the member said, stressing the need for a cost-to-produce analysis and noting aging cast-iron mains will require replacement over multiple years.
Staff member Jared, who the committee addressed about the economics, said staff are still compiling data and expected to provide a reliable cost estimate by about June. “I would say probably by June I could give you a good number,” Jared said.
The chair confirmed the timing for the rate changes: the water CPI adjustment would affect March billing and the sewer change would take effect on May 1. A motion to recommend the CPI adjustments to council was made, seconded and approved by voice vote, giving the council a favorable recommendation. The transcript records the vote as a voice vote with “Aye” responses; individual roll-call votes were not recorded in the transcript.
The committee then moved to adjourn and closed the meeting.
