Council adopts multi-year water and sewer rate plan to restore utility balance

The Percival Town Council voted unanimously Tuesday to adopt Ordinance 26-05-01, which codifies a multi-year schedule of water and sewer rate increases intended to restore structural balance to the town’s utility funds and preserve eligibility for a $7,000,000 PFAS grant. Council approved the ordinance with amendments proposed by the town attorney to attach the full rate and fee schedule to the ordinance.

Councilmember [name omitted in record] moved to adopt the ordinance with the attorney’s amendment; the motion was seconded and passed on a recorded voice vote of 6–0. Council Member Stout said the plan demonstrates a commitment to structural stability and could help reverse a recent credit rating downgrade. Finance staff explained the modeling shows the water fund will reach structural balance in fiscal year 2028, ahead of the PFAS grant deadline that requires such balance.

Several council members acknowledged the increases are steep for some rate years but argued that codification sends a signal to credit rating agencies and county grant partners that the town is taking responsible fiscal steps. "It shows policymakers are being intentional about achieving structural balance," staff member Liz told the council, citing conversations with rating agencies. Interim Town Manager Savio noted that codifying the plan strengthens the town’s case when pursuing external funding and partnerships with the county.

The ordinance directs that water and sewer rates and fees be increased each fiscal year according to the attached rate schedule; the council record shows that the schedule and resulting rates are adopted as part of the ordinance. With the vote, the council authorized town staff to proceed under the codified schedule and continue pursuing grant funding and county support tied to showing this financial stability.