Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities Budget topic
No spam. Unsubscribe anytime.
City presents utilities budget calling for 5% water and sewer rate increase and major capital work
Summary
Utilities staff told council the 2026 budget includes a 5% increase to water and sewer rates, plans to expand wastewater capacity from about 6 to 9 million gallons per day, and proposed capital projects including a $300,000 blower replacement and a $250,000 multi-year meter replacement program.
City utilities staff outlined a detailed utilities budget at the March 16 meeting that includes both operating and capital proposals intended to preserve system reliability and comply with regulatory expectations.
Denny Weaver, the utilities lead who presented the section to council, said the administration recommends a 5% increase in water and sewer rates to keep pace with inflation, rising chemical and energy costs, and ongoing capital needs. "Rates are increasing. They're going up 5%," Weaver said, giving example impacts: a minimal residential account (2,500 gallons) would see roughly a $1.85 monthly change, while a household using 5,000 gallons would pay about $3.70 more per month.
Weaver described planned and continuing capital work. For wastewater, the department is preparing for an expansion of treatment capacity from approximately 6 million gallons per day (mgd) to 9 mgd to reduce bypasses that EPA is phasing out. He noted an urgent mechanical need: the planned replacement of a major blower at the wastewater plant, with engineering and bidding expected for a unit on the order of $300,000. "We'll have to bid it and be installed," Weaver said.
On the water side, staff proposed beginning a multi-year meter replacement program budgeted at $250,000 to replace aging residential meters (many are about 25 years old) and to improve accuracy of billed usage for both water and sewer. Weaver said replacing slow meters helps revenue accuracy and sewer-billing parity. He also listed $225,000 in local share for water line replacements and an estimated $100,000 for repair work on the Eastern Road tank.
Weaver reviewed funding sources for sewer revenue (tap-in fees, sewage usage charges, county billing, and reimbursements) and noted opportunities for grant and loan support for large projects. He pointed to OPWC and FEMA grant funding for a major dam/amber-dam project and said the city plans to pursue State Revolving Fund loans with principal forgiveness where possible.
What happens next: The Finance committee will move the budget forward for council consideration; the proposed rate increase and capital items will be part of the final budget vote expected at the next legislative meeting.
