Council sets public hearing on 4% water-rate increase with tier adjustments

City staff presented updated water-rate models and recommended moving a proposed rate change to a public hearing at the council's next meeting.

Speaker 5 (Staff member) explained a proposed tier adjustment that would “push[] 750 households into the next tier,” shifting many accounts into the 3,000-gallon band and increasing that tier segment by about $2.49. The presenter showed the effect on a 5,000-gallon residential account as an increase of roughly $3.21 per month under one scenario and estimated that a steady 3% increase would generate about $154,000 in additional annual revenue (with partial-year capture if implemented Jan. 1). The staff presentation included a model used with an external 'Zions' calculator and a proposed $500,000 enterprise transfer to shore up reserves.

Council members raised equity and optics concerns: several members said larger households and some businesses would face higher percentage increases, while others emphasized conservation and the need to protect day-to-day resident budgets. “We do have to give at least 10 days notice to do the public hearing,” Speaker 5 reminded the body when timing the public-notice schedule.

After deliberation on resident impact, commercial burden and reserve targets, the council coalesced around placing a 4% across-the-board rate increase with the proposed tier adjustments on the public hearing agenda in two weeks. Staff was directed to publish notice, bring the detailed rate tables and the Zions model documentation, and show projected impacts on days cash on hand and enterprise transfers.