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Montrose staff outline rate increases as preliminary budget shows shortfall
Summary
City staff presented projections showing a ~ $31,000 shortfall at current rates and modelled that a 5% rate increase would raise illustrative rate figures; officials debated a larger one-time increase versus phased adjustments to avoid repeated future hikes.
Staff member outlined preliminary 2025 budget projections and told the council the current water/sewer revenue forecast would leave the city about $31,000 short if rates stayed at $7.75. "You're gonna fall $31,000 short," the staff member said while reviewing the worksheet.
The staff presentation modelled incremental increases — $8.14 and $8.53 were shown as alternatives — and also illustrated that a 5% increase in the worksheet produced sample numbers "going to $12.60 and $6.56," while staff said covering expected expenditures in the scenario would require roughly "$13.20 and $6.88," an example roughly equivalent to a 10% change in that illustration. The transcript does not specify which of the paired figures refer to water versus sewer; staff presented them as the two line items used in the city's worksheet.
Committee members debated timing and scale. One committee member urged a larger immediate adjustment to minimize repeated small increases over time, saying the council should "rip the Band Aid off now" and move ahead; other members expressed concern about customer impacts and preferred smaller, phased increases. The meeting did not include a formal vote on a specific rate increase; staff framed the numbers for further discussion and follow up.
