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Officials outline potential 13% water, 17% wastewater rate hikes as generators, meters and sewer capacity demand funding
Summary
Staff told commissioners that generating $1 million each for water and wastewater would equate to illustrative increases of about 13% (water) and 17% (wastewater); they also warned of near‑term infrastructure needs — a December deadline to install generators and hundreds of faulty or unmetered accounts — and recommended a sewer‑capacity study and asset management work.
City staff told the commission on Aug. 14 that the utility enterprise funds face structural shortfalls and capital needs that will require stepped rate increases and prioritized capital work.
Illustrative rates: Utilities staff offered an illustrative starting point: adding $1,000,000 in revenue each to the water and wastewater funds would translate roughly to a 13% increase for water and a 17% increase for wastewater, though officials said the final pattern of increases will be set by a forthcoming multi‑year rate study (NewGen Strategies) that will differentiate residential, commercial and wholesale customers.
Infrastructure urgency: Staff highlighted two immediate capital pressures. First, a December deadline was cited to install generators at the water plant, wastewater plant and key lift stations; an early estimate for generator equipment only at the water plant was about $875,000 (not including installation). Second, staff reported about 250 nonfunctioning or underperforming meters across the city and that repairing or replacing those devices would quickly restore billed revenue.
Staff recommended a citywide sewer capacity assessment (estimated roughly $580,000 among requested items) to identify near-term, high‑priority projects and to position the city for targeted grant funding. Officials noted FEMA and other grant timelines are strict and often lengthen project delivery, so advancing design work now would improve the city’s ability to act when grant funding becomes available.
What commissioners asked for: Elected officials pressed staff for clearer fee-schedule mechanics (one commissioner raised a possible inconsistency involving whether the base minimum charge includes the first 1,000 gallons), a more proportionate approach to residential vs. commercial increases, and a timetable for generator procurement and meter replacement. Staff agreed to return with a more detailed fee-schedule proposal and the NextGen/NewGen study results.
Next steps: Staff will complete asset‑management and meter‑replacement activities, pursue grant opportunities for generators, and bring a final fee schedule and rate‑study recommendations to the commission in the coming months.
