Consultant says Fraser can keep water rates near prior forecast while shifting more costs to fixed charges

John Casor of Municipal Analytics presented the Fraser City Council with an updated water and sewer financial model and a multi-year rate plan, saying the city can largely hold to last year’s forecast but will gradually shift more revenue recovery from usage fees to a higher fixed "ready-to-serve" charge.

Casor told the council the model incorporates operations and maintenance, staffing, insurance, capital costs and debt service and that staff had reprioritized capital projects to hold rates near previously projected levels. He said the city will pay about $3,000,000 a year in capital over the next five to six years, with roughly $2.5 million on the water side and about $500,000 on sewer.

"We’re slowly increasing the ready-to-serve charge and lessening the increases to the usage charge," Casor said, adding the change reduces revenue volatility when weather-driven water use falls. He estimated typical residential customers would see an 8.8% increase next fiscal year, with successive years moderating to 6% and 5% as the rate structure stabilizes.

Council members pressed for comparisons with neighboring communities and for plain-language explanations for residents. Mayor Lesich asked how Fraser’s costs compare to those charged by the Great Lakes Water Authority; Casor said the authority’s charges vary by community based on storage, distance, peak usage and other technical factors.

Several council members emphasized affordability concerns. Council member Higgins said the city must maintain infrastructure to avoid crises like recent failures elsewhere, while Council member Bransky urged staff to keep the public informed about how investments will be prioritized.

Casor recommended annual rate-management reviews, with updated customer and capital data returned to council each July 1. The presentation concludes the council’s technical review; if it approves the proposed rates those would take effect with the new fiscal year.