Council receives utility-rate update; staff says prior increases averted multimillion-dollar deficits

City staff provided the council with the annual utility rate update and reminded members that the new rates are scheduled to take effect July 1. Staff said the current five‑year rate plan was adopted last year and that without the prior year’s increases the water fund faced a projected $4.2 million shortfall and the wastewater fund a projected $4.8 million shortfall.

"These rates did that. This painful process, these hard rates did that for this community," City Manager Anita Racker said, summarizing staff's argument that the earlier increases stabilized the funds. Staff presented the schedule of smaller annual increases going forward (water +3%, sewer +5%, garbage +13% in the presentation), and said the modeled average household bill for a 10,000‑gallon residential user will rise (presentation phrasing: "about $8 and $48.50 per month").

Staff also emphasized that the rate revenue programs include funds for deferred maintenance and replacement projects; the presentation noted the adopted plan finances roughly one mile of water pipe replacement per year on a 250‑mile system. No action was required; staff will post updated bill calculators and continue to provide annual reports.