Council hears budget review, debt schedule and proposed modest utility rate increases

City Administrator/finance staff reviewed the draft 2026–27 budget and long-term debt schedule at the June 3 council meeting, outlining expected debt service and proposed utility-rate adjustments. Jason (city staff) told the council the city plans to pay off roughly $445,000 in the coming fiscal year and currently carries about $11 million in total debt, including recent borrowing for a water-treatment plant.

Jason presented enterprise-fund figures and recommended gradual utility-rate steps rather than a single large increase. He said the water fund is budgeted with revenues and noted operational pressures: ‘‘If you leave it as is that without any changes…’’ Jason recommended a phased approach to power rates (roughly a 3–5% increase) and a $1 increase to the sewer base rate as preliminary steps; staff will complete a water-fee study and return with detailed proposals.

Councilors asked for clarity on how much of the city’s debt is attributable to the water-treatment plant; staff replied that the plant accounts for the bulk of the debt and cited an example figure of about $7.5 million. Members discussed the impacts of reducing reserve drawdown now to avoid larger problems later; one councilor said cities that do not keep rates current may need to dip into reserves, causing longer-term fiscal stress.

Jason also noted pressures on the power fund related to reduced hydropower from Lake Powell and Bonanza plant outages and recommended slow, regular increases rather than a large one-time jump. Staff and council agreed to finalize the budget and submit it to the state for review once outstanding clarifications are addressed.