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Committee reviews plan to replace 8,000-gallon minimum with infrastructure charge; projection shows water fund shortfall
Summary
Staff modeling shows the water fund could run a projected deficit (~$718,000) in 10 years without changes. The presenter proposed eliminating the 8,000-gallon minimum, adding an infrastructure charge to bills, and phasing scheduled increases to restore the fund by the mid-2030s.
Presenter outlined a 10-year projection for the water fund and said, "If we do nothing in 10 years, we're gonna have negative $718,000 in the water funds." The proposal replaces the minimum with an infrastructure charge applied to each bill to better align charges with the cost to maintain distribution infrastructure while lowering marginal water rates.
The presenter gave first-year charge examples and schedule: "the water infrastructure charge will be $47.73 per 0.25 1st year" and "sewer infrastructure part chart will be $54.47 per 0.25 1st year." He emphasized that the marginal rate would fall while total revenues to the water fund would increase; modeled annual increases were included to reach positive balances toward 2035. Committee members asked for notice timing, draft communication for the newsletter, and for a delayed start date (Jan. 1) to give residents lead time.
