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Montrose staff presents water rate options after projecting a ~$31,000 water‑fund shortfall
Summary
At the July 22 workshop, staff showed preliminary 2025 utility budgets and proposed scenarios including a 5% annual increase or a one‑time 10% hike (raising a $12 base to $13.20) to address an estimated $31,000 water‑fund shortfall; council asked staff to refine numbers.
City staff presented preliminary utility fund numbers at the City of Montrose workshop on July 22 and proposed options to shore up the water fund for 2025.
Staff displayed current and proposed 2025 rates and said the water fund faces roughly a $31,000 shortfall under the preliminary expenditure plan. The presentation included two example approaches: a smaller recurring increase (staff suggested attempting about 5% annually to keep pace with costs) or a larger one‑time adjustment (staff showed a 10% example that would raise a $12 base rate to $13.20).
Wastewater and sewer unit rates were shown as largely unchanged in the preliminary spreadsheet. Staff said the water proposal is meant to spread cost increases so the city avoids larger, more disruptive hikes in the future. Council members debated timing and public communication, with at least one member describing the 10% option as "ripping a band aid off" — a quick, larger adjustment to reduce future volatility.
What’s next: Council asked staff to continue refining the rate scenarios, provide comparable rates from nearby jurisdictions, and return with detailed expenditure and revenue projections. No rate changes were adopted at the workshop.
