Tipton City schedules July 13 public hearing after utilities propose water and sewer rate increases

Jim Akram, general manager of Tipton Utilities, told the Tipton City Common Council on June 22 that the utility is proposing a water-rate increase equivalent to about $6 per month and a sewer-rate increase of about $10.50 per month for an average 4,000-gallon user and recommended the council set a public hearing on the ordinances.

"This has nothing to do with electrical rates," Akram said, explaining the proposed changes apply only to the city water and sewer service area. He said the proposed change would raise the typical monthly combined water and sewer bill from about $70.63 to $88.91 for a 4,000-gallon household under the consultants’ model.

The recommendation follows a rate study and benchmarking that, Akram said, showed Tipton’s rates are below market. Consultant Brandon Barkle of Cronin & Associates summarized the analysis: the water proposal targets a $26 monthly consumption charge for a 4,000-gallon user and the sewer proposal is modeled at about $52.20 (both figures exclude certain fees and taxes used in billing examples). Barkle said the study accounted for operating expenses, depreciation, working capital and outstanding debt obligations.

Barkle also outlined proposed availability (capacity) fees for new customers and said the study recommended leaving the existing water connection fee unchanged while increasing availability fees currently at $250 so new development contributes fairly to system capacity. "Availability fees are a buy-in to existing infrastructure and are widely used so growth pays for growth," Barkle said.

Councilors and staff questioned the timing and scope of the increases. Akram cited multiple pressures: increases in labor and materials, recent contributions to local street projects (Tipton Utilities participated with more than $500,000 for east/west street water-line work), and a prior cybersecurity incident that required immediate investments. He said the utility is "treading water" financially and that delaying increases risks much larger hikes later or potential sale of utility assets if infrastructure becomes legally "distressed."

Council members asked about alternatives including phasing increases, protecting fixed-income households, and whether to implement water and sewer adjustments together or in phases. Akram and Barkle said a phased approach is possible but the consultant’s recommendation was a single implementation for clarity and sustainability; the utility recommended a target effective date around Sept. 1 to allow administrative preparation.

Procedurally, council members voted to accept Ordinance 2026-02 (water rate adjustments) and Ordinance 2026-03 (sewer rate adjustments) for scheduling: both were set for a public hearing on July 13, with a first-reading vote to follow that evening and the final (second-reading) vote expected at a subsequent meeting.

Next steps: the council will hold the public hearing July 13, take a first-reading vote that night and, if moved forward, consider final adoption at a later meeting. Tipton Utilities will provide supporting materials and the rate study to the public ahead of that hearing.

Ending: The ordinances were advanced for public hearing and first reading on July 13; the council did not adopt final changes on June 22.