Farmington council reviews water and sewer rate study; no rate decision

Farmington — The Farmington City Council reviewed a municipal water and sewer rate study during a special meeting documented in the minutes. The minutes summarize a December baseline model presented by John Kaczor, principal of Municipal Analytics, that assumed $15 million in water capital improvements (with $11 million to be funded by borrowing) and $6.5 million in sewer improvements (with $3.5 million funded by debt).

Kaczor’s baseline, as described in the minutes, would require water rate increases of about 7.3% per year for 10 years. For sewer, the baseline showed increases of roughly 8% per year for four years followed by 4% annual increases thereafter. The minutes note that limiting annual increases to 5% would sharply curtail capital work — leaving roughly $200,000 per year available for water capital and about $1.8 million for sewer — while a more aggressive 9.7% annual increase scenario would permit about $10 million in sewer investment over a decade and reduce water borrowing to about $10.7 million.

Council members discussed options but did not adopt a rate plan. According to the minutes, council members considered a phased approach that would raise the meter base charge by approximately 8.5% annually for both water and sewer as one way to spread increases while preserving some capital investment. The record states explicitly that “no action was taken.”

The discussion centered on balancing near-term affordability with the city’s long-term capital needs, including the scope and timing of borrowing for pipes and treatment upgrades. The minutes do not record public comment on the item.

Next steps: The minutes show the council discussed options but left the matter without a formal vote or adopted schedule. The council may revisit the study or direct staff to return with specific ordinance or rate-change language at a future meeting.