Consultant outlines utility rate study; council questions past work and scope

Todd Cristiano, a representative of Raftelis, presented a preliminary overview Sept. 9 of a utility rate study for Rock Springs that will analyze water, wastewater and stormwater finances and recommend rate structures.

"Best practice is for municipalities to conduct a rate study to help ensure financial stability, promote equity and fairness, and support a long-term plan," Cristiano said. He described Raftelis’s approach as finalizing capital plans for water, wastewater and stormwater, and balancing the use of reserves, grants, loans and specific-purpose tax funds. Cristiano said Raftelis will assess 10-year projections to help determine appropriate rates for different customer classes.

Cristiano highlighted challenges the study will consider, including inflation, rate-increase fatigue among customers, climate-related shifts in demand, higher expected borrowing costs and rising repair-and-replacement expenses. He explained that different customer classes (for example, irrigation-only, certain commercial types, mobile homes and multi-family accounts) are defined by demand characteristics rather than simple usage metrics.

During questions, Councilor Zotti asked when the last formal rate study had been performed. Matthew McBurnett, Director of Administrative Services, said he was not aware of any past formal studies; historically, rate adjustments were tied to water-board actions and subsequent city budget decisions. Councilor Bingham asked whether water tap fees would be evaluated; Cristiano said tap fees were not initially in scope but the firm may expand the scope after conversations earlier that day.

Mayor Max Mickelson thanked Cristiano for the presentation. Raftelis indicated it hopes to present again in the fourth quarter of 2025 or early 2026.