In a recent government meeting, officials discussed significant increases in water and sewer rates for both in-town and out-of-town customers, emphasizing the need for a fair rate structure that reflects the true cost of service.

For residential customers using 4,000 gallons of water per month, the proposed increase would raise their bills from $4,743 to $6,150, an increase of $1,408. Customers using 100,000 gallons would see an even steeper rise, with their monthly bills increasing by $165. The discussion highlighted the inherent challenges of serving out-of-town customers, who utilize city infrastructure without contributing to its funding through property taxes or general obligation bonds.

Officials proposed a 50% premium for out-of-town water service, which is currently assessed at a much lower rate. This adjustment aims to address the additional costs incurred when serving customers outside city limits. The rationale is that out-of-town residents benefit from city services, such as roads and public facilities, without adequately compensating the city for their use.

The meeting also covered the implications of different rate structures. A meter size-based minimum charge was favored for its fairness and simplicity, suggesting that it would only increase the average residential bill by about $2 per month. In contrast, a description-based rate structure would lead to slightly higher increases for some customers.

Sewer rates were also addressed, with proposed increases of $21.48 for meter size-based billing and $26.55 for description-based billing for the same 4,000-gallon customer. Additionally, stormwater charges could add another $34.44 to monthly bills, depending on the structure chosen.

Overall, officials underscored the urgency of adjusting rates to ensure the sustainability of the water and sewer utilities, warning that failure to do so could lead to severe consequences for service reliability. The proposed changes reflect a broader effort to align utility rates with actual service costs, ensuring that all customers contribute fairly to the maintenance and operation of essential services.