Council approves 11¢ per‑1,000‑gallon wholesale pass‑through to match district increase

City water staff presented Resolution 20‑26‑15 asking the council to pass through an 11¢ per 1,000‑gallon increase the wholesale district planned to impose on the city. Corey (water staff) said the district increase will make potable water wholesale rise from $1.92 to $2.03 per 1,000 gallons and secondary from $1.38 to $1.49; the proposed effective date is July 1, 2026.

Councilmembers discussed how the district increase interacts with the city's prior practice of a 2% annual increase, concerns about the burden on fixed‑income households, and whether the city should revisit base‑rate structure to provide a small included volume for low‑use accounts. Staff said they are finalizing a phased capital plan for transmission‑line replacements that breaks the work into six phases to prioritize the worst segments and that last year the city spent about $110,000 on water repairs.

A motion to approve the 11¢ pass‑through to match the district was made, seconded and approved by voice vote. Council members signaled they will continue analyzing a broader rate strategy (base rates, tier structures and a phased capital program) and expect additional recommendations in the coming months.

The resolution approved at this meeting is intended to avoid the water fund absorbing the district increase and give staff time to present refined capital and rate options that tie revenue to prioritized infrastructure replacement.