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PFM recommends modest utility rate hikes and transfer of LOST funds to debt service
Summary
Financial adviser Matt Stoffell advised Prairie City Council to raise water rates 3%, sewer rates 2% and sanitation rates 3%, and to transfer $49,256 in LOST funds to debt service to strengthen coverage; the recommendation was presented but no rate change vote was taken March 11.
Matt Stoffell of PFM Financial Advisors told the Prairie City Council on March 11 that the city should consider modest increases to residential utility rates and a one-time transfer of local option sales tax (LOST) funds to shore up debt service.
Stoffell recommended a 3% increase to water rates, a 2% increase to sewer rates and a 3% increase to sanitation rates. He also recommended transferring $49,256 in LOST funds to the city’s debt service account to improve debt coverage ratios. The recommendation was presented as financial advice; the minutes record the recommendation but show no motion or vote to adopt rate changes at the meeting.
Council chairing and staff received the presentation as part of the meeting packet. Interim City Administrator and Library Director Sue Ponder and Finance Officer Jadi Brown were present for the financial review. Council did not take formal action to change water, sewer or sanitation rates at the March 11 session.
If the council pursues the recommendations, residents could see modest increases on future utility bills and city finances would reflect a one-time shift of LOST revenues to debt service. Any formal rate change would require a future council action to set effective dates and implement billing adjustments.
The council’s agenda included several other financial items that were approved by motion during the meeting, including routine claims, resolutions and contract approvals; those approvals were handled separately from Stoffell’s advisory presentation.
