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Public hearing set for Booster Pump project; council warned a rate increase is likely
Summary
Council scheduled a public hearing to brief residents on the Booster Pump project and discussed future water-rate changes. Staff said the $ grant avoids an immediate $20 loan-driven increase but that a later rate change and tiered rates are being explored.
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Council discussed the required public hearing for the Booster Pump project and how the city will communicate potential future rate changes to residents. The Chair said a public hearing will be included so the public "know what's going on with the Booster Pump project," and staff confirmed the hearing can be noticed on the same day as a work meeting.
Staff emphasized that because the project is funded by a grant rather than a loan the city is not required to raise rates immediately, but warned rate increases are likely in the future to set aside funds for repairs and reserves. "Had this been a loan, the rates would have gone up at least $20," a staff member said, and staff described working on a tiered-rate structure to reduce the size of a base-rate increase for lower-volume users. Council members urged being upfront with residents about the coming increase and holding a follow-up meeting once draft numbers are available.
