Junction City administrator flags looming water and sewer shortfall, recommends rate study and metro connection

The interim city administrator presented a preliminary, "30,000‑foot" review of Junction City's water and sewer enterprise funds at the March 24 work session, warning that aging infrastructure and a DEQ administrative order (MAO) will require significant, costly changes.

"I do plan to recommend a water and sewer rate increase as part of the proposed budget," the administrator told council, adding that a comprehensive rate study should follow once the city has better cost estimates for connecting to the metropolitan wastewater system. He said the two main alternatives are building a new wastewater plant (labor‑ and capital‑intensive) or connecting to the metropolitan system; the administrator characterized the metropolitan option as the more viable path for compliance and long‑term capacity.

Councilors asked for a rate‑study that compares neighboring towns and recommended options the study should include—such as increasing block rates designed to protect low‑consumption, fixed‑income residents while shifting more costs to large commercial or high‑use customers. Several councilors emphasized sensitivity to residents on fixed incomes and requested comparable rate data from similar sized cities.

The administrator also noted the city's in‑house projects team has completed a significant volume of smaller infrastructure projects and that not every project needs to be contracted out, a practice that has likely saved money. He cautioned the council that prior rate studies assumed lower inflation and that higher real inflation since the study has reduced the purchasing power of revenues, increasing the urgency of longer‑term projections.