Consultant recommends five-year utility rate plan for Snowflake, warns of early larger increases

Dan Jackson of Wildan Financial Services told the Snowflake Town Council during a work session on Oct. 7 that the firm will recommend a five-year utility rate plan designed to fund long-term capital improvements without accruing additional debt. "Everybody is facing the same issue, raising rates 5%-6% each year," Jackson said, adding that the first few years would include larger increases to build a capital improvement fund and later rises would be limited to cost-of-living adjustments.

Jackson said Snowflake residents "use a little bit more than the average usage over the state median" and emphasized that rates must cover capital expenses: "You have to have rates that cover capital improvements costs, it is not the lowest or the highest." The recommendation is a planning framework; Jackson said adjustments would be permitted as conditions change.

Councilmember Reid Stinnett asked whether a status-quo plan or a conservation plan would be more acceptable to the community; Jackson replied that "every community reacts differently." Councilmember Greg Brimhall pressed about the golf course rate differential and cautioned against creating customer classes that treat residential customers differently: "You should consider every residential customer the same; otherwise every single person could theoretically have their own individual rate." Councilmember Travis Kay raised deferred maintenance concerns, noting Snowflake has backlog needs that influence the recommended timing of increases.

No formal action or vote occurred; staff will incorporate the consultant's recommendation into budgeting discussions and the town may consider phased implementation or adjustments based on further analysis.