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Council hears utilities-rate study update; staff outlines possible stormwater utility and fairness concerns
Summary
Utilities staff provided an update on a rate study and recommended considering a stormwater utility to shift costs toward impervious-area drivers; staff noted major wastewater plant work ahead (approximately $40 million) and emphasized public outreach will be required for fairness and implementation.
Utilities staff reviewed the ongoing rate study and said the analysis shows the existing water-pollution-control fee (largely tied to water consumption) does not fairly reflect stormwater and wastewater cost drivers for seasonal low-use properties. Staff described a framework in which stormwater costs would be allocated based on impervious area and suggested the city might establish a separate stormwater utility with accompanying rate and credit structures.
Staff warned the changes could be difficult to communicate and may produce shifts in customer bills; they noted the wastewater plant needs roughly $40 million in improvements and that prior rate deferrals increased infrastructure risk. Councilors emphasized the need for robust outreach and asked staff to schedule public listening sessions and a November report with proposed guardrails and policy options.
