Stabilization fund, FEMA reimbursement eyed to pay overdue water‑plant filter rebuild and a rate study

City staff told council they plan to use a portion of pending FEMA reimbursements and rate‑stabilization reserves to fund a long‑deferred water‑treatment filter rebuild and to commission a full rate study.

"That filter replacement has been done since 1986... that should have been done every five years," Carl Stevens said, arguing the plant needs a full media and basin rebuild now to extend its life and reduce chemical costs. Stevens recommended combining a capital rebuild with a long‑term maintenance plan.

Stevens said the city submitted an electric‑system FEMA project that could return about $1.44 million; the proposal would return roughly $900,000 to the rate‑stabilization account and use about $500,000 toward the filter rebuild and a full rate‑study contract. He said the rate‑stabilization account balance stands near $3 million after prior draws.

The workshop also covered utility revenue forecasts tied to growth: staff projected modest utility revenue increases (1.8–3%) based on new homes, a concrete plant and fuller operations for recent business customers. Stevens said the city is not proposing a general rate increase to customers this cycle but recommended a cost‑of‑service study to ensure rates align with long‑run costs.

No formal action was taken at the workshop; councilmembers asked staff to provide follow‑up details on estimated capital costs, FEMA timing and the proposed scope and vendor options for the rate study.