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Staff proposes modest water and sewer rate increases to preserve grant eligibility
Summary
City staff recommended a 4% water‑rate increase and roughly 3% on sewer to keep rates above state benchmarks that have allowed the city to access grant forgiveness; staff said the increases would be revisited if fuel prices fall.
A city presenter recommended council consider a 4% increase to water rates and an approximately 3% increase for sewer, citing inflationary pressures and a recent diesel surcharge from the city's sanitation contractor. "So we're gonna recommend a 4% increase on our water side," the presenter said, and suggested a smaller sewer increase because sewer rates already sit at a higher level.
Staff argued the rate adjustments are linked to grant eligibility: keeping rates above a benchmark allowed the city to secure grant forgiveness previously, and staff warned falling below that threshold could jeopardize future funding. The presenter provided comparative figures — combined water/sewer for 5,000 gallons at $90.90 versus a state average of $94.82 — and said staff will bring a balanced budget and more detailed recommendations at the next meeting.
