City weighs adding utility charge to boost "dig" funds for housing infrastructure

Assistant City Manager Theresa Fitch briefed council on the city's "dig funds," which help offset infrastructure costs for new residential development. Fitch said adding $1 per month to water and $1 to sewer (or $2 for customers on both) would produce an estimated $707,000 annually but would still leave a shortfall to reach a $3'to'4 million annual target staff described as desirable.

Council members asked for a confidential briefing on the ten projects staff said could seek assistance, reminded staff of sensitivity around rate increases, and asked legal to confirm whether such a flat-dollar utility charge is permissible. Several members emphasized the need for predictability and transparency before committing to a steady new revenue stream.