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Council adopts updated water and sewer rates as package plant comes online; average customer to see modest monthly increases
Summary
Staff presented the annual water and wastewater rate study; council approved rate amendments intended to meet bond covenant coverage and cover new package plant operating costs. The consultant said the average 6,000‑gallon user faces about $2 more monthly for water and about $8 more for sewer under the proposal.
City staff presented the 2026 water and wastewater rate analysis and the council adopted an ordinance updating utility base and tiered consumption rates.
Gary, the presenter, said the update is an annual exercise that uses the prior fiscal year audit and budget projections to set rates designed to meet bond‑covenant coverage requirements and fund new operating costs. He said the proposed changes aim to bring coverage closer to the Water Development Board’s requirement (1.1x) and the city’s financial adviser target (about 1.25x). For an average user of about 6,000 gallons, Gary said the proposal would amount to roughly $2 a month on water and about $8 a month on sewer.
Staff also cited upcoming capital and operating expenses tied to a new package wastewater plant and a transmission main from the Burnet wellfield. Gary characterized the package plant cost at roughly $4,000,000 and — when discussing transmission — quoted figures that were spoken as a sequence of numbers and interpreted in the presentation as approximately $7.8 million for the transmission main. Council discussed rate math and meter-size classes, and asked the utility staff to provide clearer breakouts; after discussion council voted to adopt the ordinance amending utility rates and charges.
The council recorded the motion, approved the ordinance and asked staff to include clearer line‑item projections and a multi‑year rate forecast with future packets.
