Authority reviews five-year rate projections and warns reserves will remain thin without early increases

Board members described two consultant scenarios and discussed the authority’s weak projected cash balances even after planned rate increases. Committee member (speaker 5) said the consultant’s scenarios keep reserves near the minimum (a 90‑day operating target under one scenario) and urged the board to prioritize the first three years of increases to avoid recurring deficits.

The authority read a multi‑year schedule for FY2028–FY2031; the transcript records projected per‑1,000‑gallon water rates rising into the $7–$9 range and sewer rates into the $10–$14 range toward the end of the five‑year plan. The reading of the FY2027 projection in the transcript is ambiguous; board members and staff said the official packet distributed before the public hearing will contain the precise FY2027 and later‑year figures for review.

"Those first three years are pretty important," Committee member (speaker 5) said, urging the board to adopt early increases as a package to provide predictability and stabilize cash flow. Members also discussed two consultant scenarios described in the memo: a 90‑day cash reserve scenario and a level‑funded scenario, and noted that even with the proposed increases projected cash balances remain "lean." The board voted unanimously to include the FY2027–FY2031 schedule in the public‑hearing scope for review by customers.

The authority directed staff to ensure the public packet includes a breakdown of charges (operating cost, capital cost and purchased water cost) so customers can see the cost drivers behind the proposed increases.