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Bel Aire reviews water/sewer funding options; finance director says 0% rate increase for 2027 feasible
Summary
Finance director presented models showing the water and sewer funds could absorb a 0% rate increase for 2027 (reducing water fund revenues by about $100,000) while remaining above reserve targets; council discussed water‑system capital needs, including a likely east‑side water tower in coming years.
Finance director Barry presented a revised model showing the effect of freezing the automatic 3% water and sewer rate increases for 2027. The model shifted the water fund starting balance and showed a roughly $100,000 reduction in water revenues for 2027 under a 0% scenario; Barry said the water fund could absorb the reduction and remain at roughly the target reserve level. He recommended evaluating the decision year‑to‑year against capital needs.
Councilmembers cautioned that the water fund has future capital needs — in particular a new east‑side water tower and water‑main replacements — that could change the recommendation. The mayor and manager noted that some CCUA/EPA remedial‑water reuse options exist and that CCUA would likely absorb most connection costs while the city would incur modest piping costs; council asked staff to refine the capital‑project list before finalizing rate decisions. "For 2027, we could definitely absorb that 0% increase if that's council's desire," the finance director said.
