Aldermen Perfect Water-Rate Bill, Add Required Cost-of-Service Study

An alderman filed and moved forward a multi-part plan to shore up the city’s water utility on June 12, asking the Board of Aldermen to approve multi-year rate increases, use RAM settlement funds and enable future bonding to meet more than $700 million in capital needs.

The sponsor, the alderman from the 9th, told the board the water division has run deficits and depleted contingency funds after a moratorium on shut-offs and rising operating costs. He said the strategy combines rates, settlement dollars and bonding and that the bill includes an affordability tier and a requirement to procure a class cost-of-service study by June 30, 2027. “Today, it will take the courageous action of the board of aldermen to raise the rates to ensure that this public utility stays public,” the alderman said.

Why it matters: The water division operates as an enterprise fund whose rates pay for operations, maintenance and capital replacement. The sponsor cited a recent rate-efficiency study and estimated more than $700 million in deferred capital needs that cannot be met without a combination of rate increases, settlement funds and bonds. The amendment adopted on the floor adds explicit timing for the class cost-of-service study and references a separate ordinance to formalize a rate-review process to improve transparency.

What was decided: Amendment No. 1 — which sets a procurement deadline for the class cost study and references an ordinance to establish a formal rate-review process — was adopted by voice vote. The board then voted to perfect Board Bill 25 as amended, advancing it for later consideration; the transcript shows the motion to perfect was sustained in a roll-call vote.

Debate and concerns: Members raised affordability and distributional concerns and asked for clarity about how lower-income customers would be protected. The sponsor and supporters said the bill includes an affordable-rate provision and that a forthcoming class cost-of-service study and the referenced ordinance are intended to address fairness and transparency in how rates are set.

Next steps: Board Bill 25 was perfected as amended and will return for subsequent readings and final action. The amendment requires the city to procure a class cost-of-service study by June 30, 2027; the board also directed staff to draft the referenced rate-review ordinance.

Sources and attribution: Quotes and attributions come from the June 12, 2026 Board of Aldermen meeting transcript; all attributions use speakers’ names or functional labels given on the record (for example, “the alderman from the 9th”).