Draft utility budget sets $85,000 rate study, notes $1.5M sewer treatment and $400,000 filter replacement

City staff told the council a planned $85,000 professional rate study will analyze expenses and billing to ensure utility rates cover costs; staff said the consultant previously prepared models for the city, which reduced projected expense compared with a prior out‑of‑date engagement that cost more than $200,000.

On sewer and water: staff said the city spent about $1.5 million last year for sewer treatment purchased from Lawrence County Water and Sewer and recommended a budget increase to accommodate growth and inflow/infiltration concerns. For water filtration, the draft includes $91,000 to replace an irreparable sludge conveyor and hoist, and $400,000 for filter replacement; staff said those capital items should be timed with incoming POS regulations to avoid drawing on rate stabilization funds prematurely.

Staff also noted rising chemical and property‑insurance costs, and that a previously budgeted Class C lineman position (about $100,000 in salaries) was removed after the plan to create new installation teams did not proceed. Retiree health insurance was highlighted as a recurring liability, with staff stating the city pays about $10,000 per month for long‑service retiree coverage.

The presentation did not propose immediate rate changes; the rate‑study contract was described as the next step to determine whether and by how much rates should increase. Council members requested a finance committee review before second reading and asked staff to provide alternate budgets if members want to consider a millage change.