Commission hears consultant plan to stabilize water and sewer finances, considers phased rate changes

The commission received a detailed water and sewer rate study presentation May 4 from Hubbell, Roth & Clark. Consultants outlined objectives to reduce revenue volatility caused by wholesale provider increases and variable usage, to better fund capital needs and reserves, and to promote transparent rate structure tied to capacity and meter size.

Key recommendations included starting a phased increase in fixed "readiness‑to‑serve" charges based on meter size (to cover the large portion of utility costs that are fixed or wholesale/provider driven), passing wholesale provider increases through to customers, and incrementally increasing commodity charges where appropriate. The consultants proposed a target reserve balance (roughly $10 million across the utilities) to protect against major failures and to ensure capital replacement funding over a multiyear horizon. They also recommended revising connection fees to reflect current asset values in a per‑equivalent meter approach.

Commissioners asked for concrete bill examples (residential and commercial) showing the effect of the combined changes. Staff said they would draft ordinance language for readiness‑to‑serve charges and return with sample bills and a proposed schedule for ordinance amendment and rate adoption, with an expected resolution to adopt rates in June after public notice and ordinance changes.

The commission offered general support for a measured, multi‑year approach that moves the utility toward more predictable fixed revenue while retaining consumption‑based signals for conservation. Staff will bring back draft ordinance language and representative bill comparisons and will report annually on rate and reserve status.