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Consultant tells Early council to raise water rates 35% and sewer rates 30% to meet loan terms
Summary
DA Davidson consultant Michael Maloney told the Early City Council that water rates should rise about 35% and sewer rates about 30% to comply with loan covenants and make the enterprise self-sustaining; council members were told to bring final proposals to the next meeting.
Michael Maloney of financial adviser DA Davidson told the Early City Council on June 23 that the city’s water and sewer enterprise needs substantial rate increases to meet loan requirements and operate sustainably.
Maloney joined the special meeting by Zoom and advised council members that water rates should increase about 35% and sewer rates about 30% so the system can meet loan covenants and cover operating and capital needs. According to the consultant’s presentation, the current rates do not allow the enterprise to sustain itself.
The recommendation from DA Davidson was presented to council as a financing and compliance matter rather than as a finalized proposal. Council members were told to take the consultant’s figures under advisement and bring final rate proposals back to a future council meeting for formal consideration.
No vote on rate changes was taken at the June 23 meeting. The council’s minutes record that members will bring final ideas to the next meeting, at which any formal rate ordinance or notice requirements would be considered.
