Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit topic
No spam. Unsubscribe anytime.
2025 audit flags water utility loss; committee urged to consider about 3% simplified rate increase
Summary
At the April 13 Joint Committee of the Whole meeting, Greg Pitel presented the City of Seymour's 2025 audit, calling city finances strong overall but recommending consideration of a simplified roughly 3% water rate increase after a reported -4.17% water utility loss for FY2025.
Greg Pitel presented the City of Seymour's 2025 audit to the Joint Committee of the Whole on April 13, saying overall city finances are strong but that the water utility recorded a -4.17% loss in fiscal year 2025 and needs attention.
Pitel recommended the committee consider a simplified water rate increase of about 3% to improve the utility's rate of return and avoid a larger future hike; he also said a conventional full rate study may be required if a simplified approach is not used. He noted sewer operations and cash flow were "doing well" but cautioned that capital projects should be included when evaluating sewer rates.
City Administrator Sean Hutchison highlighted the broader fiscal context the auditor provided: the city's unassigned fund balance is 89.67% of general fund expenditures, a level Moody's characterized as strong and one that can be used to stabilize the tax rate or fund one-time capital needs.
The committee did not take a formal vote on rates at the April 13 meeting. Hutchison told the committee that, acting in its capacity as the Utility Board, the council will need to seriously consider a simplified rate increase in the coming months and may opt instead for or in addition to a full rate study.
The next procedural step is for the council/Utility Board to discuss rate options and any formal rate proposal at a future meeting; no effective date or formal rate ordinance was introduced at this session.
