Alma City reviews five-year utility rate plan proposing first-year RTS shifts and usage increases

City staff presented a proposed five-year utility rate plan covering FY2028–FY2032 that would change both RTS (recurring treatment/service) charges and consumption rates.

"What we're proposing to do in the 1st year, which would be next year, FY 2028, would be to reduce our, water RTS fee ... We would lower that by $8, and then increase the sewer RTS ... increased by $5 and then the water usage and the sewer usage would be increased by 30¢ per thousand gallons," Eric said. Staff explained the plan also would raise the flat solid-waste RTS by $4 in year one. Using a standard 0.625-inch meter and a 4,000-gallon monthly usage assumption, staff estimated a typical homeowner would see about a $3.40 increase in year one and roughly $2.60 per month on average across the five years (about $13 total by the plan's end).

The presenter said depreciation for plant assets will be included in rates going forward; commissioners pressed staff on where the depreciation funds would be held. Staff replied that plant depreciation is being covered through a designated GALA account tied to the plant payment stream while distribution-side depreciation will remain as fund balance, and they agreed to add a discrete line item in reports so future commissions and the public can see the intended designation. The commission did not set rates immediately but directed that the bond counsel and state officials be informed of the city's intentions for FY2028 so financing plans can proceed.