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Council tables proposed overhaul of water rates after questions about impacts and outreach
Summary
Public Works staff presented a meter-size base-rate and tiered usage proposal projected to raise about $1 million in 2027 for infrastructure; Council voted 3–2 to table Ordinance No. 2026-14 pending a work session and additional data.
Public Works Director Keith Despain presented a redesigned water-rate structure under Ordinance No. 2026-14 that would separate meter-size base rates from usage charges and implement tiered usage pricing in two phases (2026 tiers 1–4, additional tiers in 2027). Despain explained the City has sufficient water rights 'on paper' for projected growth but that physical water supply varies by year.
"The proposed base rates were $35 for a three-quarter-inch meter, $40 for a one-inch meter, $75 for a one-and-one-half-inch meter, $125 for a two-inch meter, $185 for a three-inch meter, $225 for a four-inch meter, and $400 for a six-inch meter," Despain said while reviewing the base-rate table and the usage tiers. He also outlined 2026 usage tiers (tier one: 0–8,000 gallons at $2.00 per 1,000 gallons; tier two: 9,000–15,000 gallons at $3.00 per 1,000 gallons; tier three: 16,000–50,000 gallons at $3.75 per 1,000 gallons; tier four: above 50,000 gallons at $4.50 per 1,000 gallons) and showed an online calculator with example bills (average winter household ~5,000 gallons; average summer ~17,000 gallons).
Councilmembers asked about business impacts, equity across customers, and the City’s aging system. Councilmember Ed Long said the City faces an estimated $80 million infrastructure need and approximately 40% water loss; he argued the City must fund replacements to remain competitive for grants. Councilmember Randel Mills and others requested a work session with additional scenario analyses and outreach information. Mills moved to table the ordinance; Munford seconded and the motion passed 3–2 (Munford, Mills, O’Driscoll aye; Long and Porter nay).
Following the tabling vote, staff and Council discussed conservation-rate options as a supply-control tool if spring flows decline; Water Superintendent Ivan Merrell said the Ashley Creek River Commissioner estimated flows could be significantly reduced around July 1, which increased urgency for a conservation mechanism but not necessarily an immediate rate adoption.
No ordinance was adopted; Council directed staff to provide more detailed scenarios, comparative data and to schedule a work session for further review.
