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Angola consultants propose phased utility rate increases and multi‑million dollar bonds for sewer and water projects
Summary
Baker Tilly recommended phased sewer and water rate increases to fund identified capital needs and to support potential 2027 (sewer) and 2028 (water) bond issuances, estimating ~40% sewer increases phased over three years and ~33% water increases phased beginning in 2028.
Angola Common Council was presented on Monday with a plan to shore up utility infrastructure that would combine phased rate increases and bond financing over the next several years.
Jeff, a consultant with Baker Tilly, summarized the utilities analysis and identified roughly $13.8 million in five‑year sewer capital needs and about $6.8 million in high‑priority water projects. He said the sewage works plan was front‑loaded, with about $3 million of rate‑funded capital in 2026–2027, and suggested a potential 2027 bond near $9.4 million (including a 20% inflation contingency) to preserve cash balances.
"We're anticipating a bond issue in 2027... amount somewhere around $9.4 million," Jeff said.
To fund those projects and maintain recommended reserves, Baker Tilly proposed a three‑phase sewer rate adjustment totaling about 40% (each phase roughly 11–11.5%), with Phase 1 proposed to start in 2026. The firm proposed phasing the water increases later—around 2028—with a total increase near 33% (illustrated as roughly 10% increments across multiple years). Consultants and city leaders said the phases should be re‑evaluated as project scopes and costs are refined.
Impact on households: Consultants modeled average combined bills and said phased implementation would avoid a single large jump. They showed an average combined utility bill rising from roughly $79 today to about $105 if all phases were fully implemented by 2030; consultants noted the city's current average bill remains below the current statewide average.
Timing and process: Baker Tilly proposed an ordinance and hearing schedule to enact the first sewer phase: introduce on July 6, hold a public hearing July 20 and final adoption Aug. 3, with rates to take effect around September. They said having a rate ordinance in place will be necessary to demonstrate the city’s ability to repay debt if it pursues a 2027 bond.
Next steps: Council members favored starting the rate‑setting process and asked staff to continue refining project lists, financing options, and public outreach plans. Consultants emphasized the ability to adjust later phases based on actual bid results, partner contributions (consultants estimated TR may contribute approximately 25% to one lift‑station upgrade) and engineering design.
