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Council directs staff to draft 2027 water-and-sewer rate ordinance after study shows fund shortfall
Summary
After reviewing a rate study and updated projections, the council agreed by consensus to ask staff to prepare ordinance language for a 5% water-and-sewer rate increase in 2027 and to reevaluate a possible 5% increase in 2028; officials said a townwide meter-replacement project and past PFAS settlement money could materially affect future revenue needs.
The Manolo Township Council agreed on July 21 to direct staff to draft ordinance language for a 5% increase to water and sewer rates in 2027 and to reassess a potential second 5% increase for 2028 following updated financial projections.
Andrew, an administration official, presented a memo and what he described as a financial analysis recommending two 5% increases to preserve the utility's fund balance. "What we've presented is a 5% rate increase both in the sewer and utility fees across the board on every fee, for 2 consecutive years," Andrew said, noting that the change pushes the need for additional revenue out to about 2030.
Gary, the township auditor, reviewed updated schedule A figures and cautioned that without periodic incremental increases the utility could face a much larger single-year increase later. He highlighted variables the council could use to change the fiscal picture, including capital-outlay timing, bonding or note financing and the lapsed-appropriation reserve.
Council members asked about alternatives. One member suggested an automatic smaller annual increase tied to CPI; Gary and staff said that approach is possible but would not fully eliminate the risk of a very large increase in 2030 unless capital-financing choices change. Officials noted the utility currently covers salaries, operating fees and a fixed payment to the Musconetcon Sewer Authority, and that water consumption variability makes revenues uneven from year to year.
Administration also told the council that a planned townwide meter-replacement project could recover lost revenue from inaccurate meters but would be a multimillion-dollar effort. "We're at the point now where we want to get everybody on one system," an administration official said, adding the township is drafting an RFP and will explore IBank financing and loan-forgiveness opportunities that could substantially reduce net cost.
Council members voiced two procedural requests: one asked that staff include a timeline for the meter work so the council can re-evaluate revenue projections, and another reminded residents that utilities are intended to provide a service rather than generate profit.
The council did not adopt an ordinance at the meeting; members signaled consensus to proceed with draft ordinance(s) and asked staff to bring back formal language and timeline details. The administration said it would apply any ordinance increase to the final quarter of 2026 for revenue-anticipation purposes and would return with updated projections before any 2028 action.
