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Consultant tells council $22M in utility repairs need phased rate increases; average household bill would rise
Summary
NewGen consultant recommended phased water, sewer and solid-waste rate changes to fund $22 million in capital projects and to preserve reserve and debt-service coverage. Example impacts: a 2,000-gallon bill would rise from $55.74 to $61.59; average 5,000-gallon bill from $69.12 to $76.20; residential solid-waste from $19.46 to $20.50.
The council heard a detailed presentation from Chris Eckert of NewGen Strategies and Solutions on a yearlong water, wastewater and solid-waste rate study. Eckert said the city faces roughly $22,000,000 in capital improvements — including an estimated $5,000,000 in lift-station projects — and that current rates would be insufficient to support the capital plan without phased increases.
Eckert recommended structural changes: higher fixed charges for larger meter sizes, standardizing in-city/outside-city rate differentials, and distinguishing commercial and residential fixed charges. He recommended “rate gradualism” to mitigate rate shock and projected the plan would restore revenue sufficiency for water and sewer by 2029 and for solid waste by 2031.
Eckert provided example customer impacts: a low-volume 2,000-gallon customer would see a monthly bill rise from $55.74 to $61.59 (an overall increase of $5.85 when sewer is included); an average 5,000-gallon customer would move from $69.12 to $76.20. On the solid-waste side, residential service (single-container level) would rise from $19.46 to $20.50 next year. The consultant said landfill gate fees for non-scheduled per-ton loads would go from $46 to $50.86 to better reflect equipment and post-closure costs.
Council members emphasized concerns about low-income and fixed-income households. One council member urged that the council consider creating a customer assistance fund or other protections for seniors and single-income households, and the consultant said the city could couple assistance programs with water-efficiency measures such as audits and low-flow fixtures.
The presentation also noted the city’s wholesale water purchases from “Cremois” (as stated on the record) and advised monitoring rising wholesale costs as a driver of long-term rates. Council did not take an immediate vote; staff and the consultant will return during budget deliberations with any adjustments.
