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City reports slight water/sewer shortfall; plans incremental rate increases
Summary
City staff told council of a modest water/sewer net loss of about $56,000–$57,000 (roughly 1% of revenue) and said the city will incrementally raise water rates with inflation to restore a positive net income; staff also noted audit timing and post-employment benefit calculations affected the reported shortfall.
A city finance official presented the city's response to the Local Government Commission, saying the bottom line showed "a slight net loss in the water sewer counts of $56,000, or $57,000." The official characterized that amount as about 1 percent of the utility's revenue and said auditors' calculations of other post-employment benefits affected the reported figures.
To address the shortfall, the official said the city will increase water rates "commensurate with inflation" and pursue incremental rate adjustments to maintain positive net income. Council members asked whether a federal funding freeze could affect grant-dependent projects such as SRF and other federal funds; staff said the immediate impact on city operations appeared limited but that some grant programs could be affected and that staff would monitor and report back to the council.
