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Eldridge board approves $5,000 annual PFM engagement and sets July 1 as planned water‑rate effective date
Summary
The board approved retaining PFM for annual water rate and cost‑of‑service review at $5,000 per year and agreed to adopt July 1 as the planned effective date for future water‑rate actions to align with fiscal planning, directing staff to schedule the formal resolution.
The Eldridge Electric & Water Utility Board voted to retain consulting firm PFM for annual water‑rate and cost‑of‑service analysis at a fee of $5,000 per year, mirroring the engagement the sewer department uses.
Finance staff explained PFM’s scope would be an annual review of the rate‑revenue model and cost‑of‑service recommendations, with additional hourly fees only if larger, separate projects arise. Staff said PFM would pull actual audited financials after fiscal‑year close and plug them into the model to confirm or update prior recommendations, such as the previously proposed annual 5% rate increase over five years.
The board also discussed the recommended effective date for future water rate adjustments. Staff said PFM typically uses July 1 to align projections with the fiscal year and that shifting from a September effective date to July 1 could materially affect multi‑year projections. Board members agreed to set July 1 as the planned annual effective date for water‑rate actions; staff may adjust timing if operational reasons require a different date.
Why it matters: establishing a standing consultant engagement and a consistent effective date for rate changes gives Eldridge a predictable planning framework and an outside review each year; the PFM contract and any specific rate resolutions will return to the board for formal approval.
