Council presses staff for more data on metered rates as water/wastewater budget shows shortfall

During an extended budget work session the treasurer and public works director presented updated water and wastewater worksheets showing the utilities operating revenues would fall short of projected expenses by roughly $131,007.84 if current flat rates remain in place. Staff proposed moving to a metered billing structure — charging per thousand gallons based on meter data rather than relying on a flat 6,500‑gallon billing convention — and described the methodology and average winter usage numbers used to model revenues.

Councilmembers raised concerns about the transition, timing, public notice and the 4.99% statutory threshold for rate increases that triggers voter involvement. Several members asked staff to produce a balanced budget using either the current flat rates (with possible small increases up to 4.99%) or a fully documented metering plan including three‑year revenue projections, capital project fees for meters and implementation schedule. Council broadly signaled support for moving toward metered billing, but asked staff to return with a concrete, balanced budget and legal clarification on the 4.99% rule before adopting rates or making budget changes.

Staff also reviewed capital project line items (including a proposed $105,000 capital projects fee for sewer lift stations and a $250,000 proposed meter capital fund for rolling implementation). Council discussed reducing reliance on one‑time fund balance carryover to cover recurring expenses and asked departments to propose cuts or reprioritized work where appropriate before the next work session.