Milford council and utilities board seek rewrite of cost study after water plant estimate rises

Milford — Milford City Council and the Milford Municipal Utilities Board on June 16 asked that a cost-of-service study be revised after officials said the report relied on broad assumptions and did not provide the level of detail needed to guide decisions on utility rates and a major water project.

Jason Neville opened the discussion of the Bolten & Menk study at the special joint meeting. City Administrator LeAnn Reinsbach asked Neville to walk the group through the findings because much of the material was unfamiliar to council and staff.

Council members and MMU board members questioned the study’s data sources, cost projections and rate assumptions and concluded the report was too broad in scope. The group asked the consultant to rework the analysis to include more detailed, itemized figures and clearer assumptions.

Officials also discussed a sizable increase in the estimated cost of the planned water treatment plant. Discussion in the meeting noted the previous estimate of roughly $18–20 million had risen to nearly $30 million when engineering was included. Participants attributed the rise to COVID-era inflation and changes to the treatment process and facility design since preliminary work began in 2020–2021.

Board and council members discussed options to address the projected funding shortfall, including the possibility of raising utility rates, and expressed concern about the impact higher rates would have on residents. No rate changes were adopted; the bodies agreed to continue the conversation at a future meeting.

Attendees also agreed to form a joint committee with representatives from both the Milford City Council and the Milford Municipal Utilities Board to review the revised study and develop recommendations. The committee assignment was framed as a response to the projected shortfall and to issues tied to a duplication of revenue previously received from the City of West Okoboji, which officials said affected available funding.

The meeting opened with Mayor Bob Clark leading the Pledge of Allegiance and the council approving the agenda on a motion by Shane Hoffman, seconded by Jantina Carney Mac Arndt. The meeting adjourned at 6:32 p.m. on a motion by Arndt, seconded by Hoffman; all members present voted aye. Kyle Mohni was recorded as absent.

Next steps: the consultant will be asked to provide a revised, more detailed cost-of-service report; the joint committee will meet to develop recommendations and a future council or board meeting will revisit rate and funding options.