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Council hears budget that proposes water-rate increase to cover CSO and treatment costs
Summary
City staff presented a draft $17.5 million revenue budget and proposed raising water rates to $7.39 per 1,000 gallons for city customers (and $4.38/1,000 gallons for county customers) to cover project costs, higher chemical treatment expenses and capital needs; the budget uses fund balance and will return for formal approval.
A city staff member presented the draft fiscal-year budget showing total revenues of $17.5 million and expenses of $17.3 million and said the draft uses an estimated corporate fund-balance withdrawal of about $226,000. "We were able to balance the budget," the presenter said, adding details on individual fund overages and capital-project adjustments.
On utilities, staff proposed a water-rate increase: "We're looking at a $7.39 per thousand gallon for city customers and ... $4.38 per thousand gallons to the county," the presenter said, explaining the rate is based on a formula using 2024 and 2025 expenses and that choosing different baselines would produce different percentage increases. Staff emphasized they tried to keep the proposed household increase under 20 percent and that future renegotiation with the county is possible after certain debt-service obligations end.
Council members and staff also discussed higher chemical-treatment costs (staff said chemical costs have risen substantially and are expected to add roughly $50,000–$60,000 to treatment expenses next year), timing for capital projects tied to grant awards, and a proposed 5% salary increase for full-time employees starting July 1. The presenter said some capital items were removed from the draft budget pending funding availability and that staff will return with the final numbers for approval.
Why it matters: the rate proposal would raise household water bills unless offset by other changes; the draft also prioritizes capital projects tied to grants and a new well that may lower treatment costs.
Next steps: staff will refine the budget with updated grant and contract figures and return the proposal for council consideration at a future meeting; no adoption vote occurred at this session.
