Duncan board reviews water-rate study and asks staff to check sewer fund before raising rates

Randy Hellbush of the National Rural Water Association presented a three-year financial review showing the Village of Duncan’s water department averaged about $90,000 in annual income against roughly $109,000 in expenses, not including a new loan payment tied to recent water work. Hellbush told the board the water project requires at least $13,000 per year for that loan payment and that the system will soon need expensive treatment-plant work.

Hellbush recommended a rate that would include a 15% reserve, saying a rate of $36.50 per month plus $3.00 per 1,000 gallons would break even but that a rate of $42.50 per month plus $3.25 per 1,000 gallons would provide the additional cushion. "The Village would need $122,000 per year just to break even," Hellbush said. He warned the treatment plant—more than 20 years old—will require replacement of media and other equipment that could cost well over $100,000.

Chairperson Gary Schlesinger questioned whether the board could tap the sewer fund to lessen the size of any water-rate increase. Hellbush and Clerk Marianna Evans agreed to review the sewer-account balances; Hellbush noted that lowering sewer rates would be unwise if it left that fund underfunded. The board asked staff to examine sewer revenues and report back.

By motion, Trustee Lance Denbo, seconded by Chairperson Schlesinger, asked staff to review sewer-account revenue with the goal of lessening the water-rate increase; the board voted unanimously in favor. No rate change was adopted at the meeting, and any increase would return to the board after staff analysis.

The study prompted staff to flag upcoming capital needs: ongoing loan debt and likely treatment-plant media replacement. The board directed follow-up work to identify options and potential timelines for implementing any rate change.