Title
Consideration of and action on an ordinance amending Section 106-25(b)(c) of the Code of Ordinances pertaining to water and sewer rates.
Body
Summary:
The City's water and sewer rates were last updated on September 2, 2025. In 2024, the City entered into an agreement with NewGen Strategies and Solutions to conduct a water and sewer rate study spanning FY 2025 through FY 2030. Per our agreement with NewGen Strategies and Solutions, the study was be reviewed for fiscal year 2026 and 2027 to assess if additional modifications need to be made to our rates or rate structure. The 2025 study recommended a five percent (5%) rate increase. The 2026 review of the study recommended the addition of meter equivalency base rates for commercial customers and increasing volumetric rates for residential customers with meter equivalency being phased in at 20% annually until full equivalency is reached in FY 2030. The 2027 review recommended for FY 2026-2026 continuing with the meter equivalency implementation with no additional increases to water rates and a 3.75% increase to sewer rates. Pursuant to this recommendation, the proposed budget for FY 2026-2027 includes these recommended changes. The rates for FY 2027 can be found on Schedule “A” of the attached ordinance. The new rates are expected to generate sufficient revenues for the operational and capital needs of the Water and Sewer Fund in the upcoming budget year.
As stated in the attached ordinance, the new rates would be effective for all water passing through the meter after October 1, 2026. Based on the individual billing cycles, the City will begin collecting revenues based on the new rates in December 2026.
Fiscal/Budgetary Impact:
The water and sewer rates in the Fiscal Year 2026-2027 budget include phasing in an additional 20% of the meter equivalency base rates for commercial customers and increasing sewer rates for all customers by 3.75%.
Recommended action
Review and adopt the ordinance changing the City's Code of Ordinances for water and sewer rates.