Consultants outline three stormwater rate paths, including a 15% 2027 increase that front‑loads capital

Consultants from FCS Bowman presented the city with three modeled rate paths to fund the 2026–2031 surface water capital improvement plan and ongoing operations.

“If the city were to go ahead with the 15% increase for 2027, we would forecast no additional increases needed,” consultant John Guillarducci said, describing the front‑loaded option as a way to complete much of the planned capital by 2029. He contrasted that with a 4% per year smoothing approach that would sustain about $8 million per year in capital and a 2.5% per year path that would leave roughly $5.5 million per year for capital after the planning period.

The consultant said the capital plan on the table is about $32 million and that, without additional rate increases, growth is already lifting revenue to roughly $8.4–8.5 million because of recent annexation. Staff added the utility is aiming for target reserves (60 days operating minimum and a capital reserve) and will return later with rate‑structure options and potential credits.

Staff also noted the utility’s existing equity program provides a 50% discount for seniors, low‑income residents and people with disabilities; further rate structure options and potential rate credits will be presented to council at a future meeting.