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Council hears $51M–$105M estimate and warns of rate shock for low-income households
Summary
Schultz told the council the replacement program could cost between $51 million and $105 million over ten years and that funding it through rates could push bills for the lowest-income households above 11% of income without alternative subsidies.
During the briefing, Rob Schultz presented a ten-year cost range for a full service-line and related mains remediation program and discussed how those costs could be distributed across ratepayers or taxpayers.
"So the estimate is 51 to $105,000,000 over 10 years," Schultz said, adding that the high-end estimate reflects replacement of water mains and related capital work the city cannot postpone. He said that rebuilding mains and replacing service lines together drives the larger cost estimate because disturbed mains can trigger water-quality issues that require more extensive construction.
Council members raised equity and affordability concerns. Schultz warned that if the full program were paid through true-cost-of-service rates the city's lowest 20% of customers could face water bills representing more than 11% of income under some scenarios. Multiple councilors suggested adding program funds to the city's CIP or seeking state/federal grants or low-interest financing to reduce rate impacts.
