Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utility Rates topic
No spam. Unsubscribe anytime.
Prairie City approves modest utility rate increases after PFM finds revenue shortfalls
Summary
The Prairie City Council voted unanimously Feb. 27 to raise water rates 3%, sewer rates 2% and sanitation rates 5% after a PFM fiscal review revealed FY24 shortfalls and unexpected drops in utility revenues; Council asked staff to investigate the cause.
The Prairie City City Council voted unanimously on Feb. 27 to increase utility rates by 3% for water, 2% for sewer and 5% for sanitation following a fiscal presentation from consultant Carrie Swartz of PFM.
PFM’s analysis, presented by Swartz, noted FY24 ending balances that showed a $574,000 deficit in the water fund and a $28,000 deficit in the sewer fund. Swartz told the council that the deficits were partly the result of missed funding transfers for projects completed during the year and that revenues for water and sewer were lower than expected despite a prior rate increase and additional usage and customers. PFM recommended the modest rate increases as part of a plan to stabilize fund balances.
Councilmember Joe Disney moved to adopt the rate recommendations; Councilmember Derek Ingle seconded. On a roll-call vote the motion carried unanimously. Disney added that an internal audit should be conducted to determine why utility revenue declined.
City staff noted the council will discuss the matter further during upcoming budget work and will return with any necessary financial adjustments. The council has scheduled a budget workshop for March 12 to continue review of FY25 and FY26 budgets.
