Black & Veatch presents water‑rate study proposing multi‑year increases, board recommends forwarding to council

Anna White of Black & Veatch presented the firm’s water rate study, which concludes that the utility’s existing revenue would fall short of projected operating and capital needs without rate adjustments. The study proposes a sequence of annual adjustments designed to align revenue with projected requirements: 12% in 2027–2028, 9% in 2029–2030, 7% in 2031 and 5% in 2032. Black & Veatch also proposed a fixed monthly main‑replacement fee by meter size, estimated to generate roughly $2 million in 2027 and growing to about $4 million by 2031/2032.

White explained the methodology — a three‑step approach of determining the revenue requirement, allocating costs across customer classes (residential, commercial, industrial, wholesale), and designing rates — and said the residential class would bear most of the revenue increase inside city limits because it is the largest class. She showed charts of revenue requirements (projected total revenue requirement rising from roughly $45M in 2027 toward $50–55M by 2030–2032) and operating reserve days, noting that without adjustments fund balance metrics could fall into deficit by 2029–2030.

Board members asked whether large new loads such as data centers were included; White said none were included because usage and contracts are not finalized and recommended integrating such loads only after contracts are certain. After discussion a board member moved that the board present the study to the city council; the motion passed by roll‑call vote.

Next steps: staff will forward the Black & Veatch recommendations to the city council for consideration; rate changes would require council action and implementation planning.