The meeting’s most significant topic revolved around the financial intricacies of the expansive $47 million Phase 1A Water and Sewer improvements project. Concerns emerged about the city’s financial responsibilities, particularly the remaining portion due for repayment within three decades. To address the uncertainty surrounding the exact figures, one member likened the situation to “standing in a pothole or if I’m standing in a volcano,” underscoring the ambiguity in understanding the financial impact of a proposed 5% rate increase. The committee suggested that Mike Bubani, a key figure in financial planning, could provide more comprehensive projections to aid in decision-making.

The committee agreed on the necessity for a collaborative review of the financial status, potentially on a quarterly basis, to monitor payments to the Public Facilities Authority (PFA) and refine revenue forecasts. There was also a proposal to involve Bubani in future meetings to align all members and influence council decisions.

Another topic of concern was the potential transfer of funds from the Capital Improvement Plan (CIP) into the sewer fund to accommodate loan payments. This transfer, projected for 2025 and 2026, could impact other city projects, as substantial annual commitments have already been made to support the sewer fund. Members voiced worries that other departments, such as streets and parks, might not fully grasp the financial commitments directed toward sewer improvements.

The committee requested Bubani prepare a detailed report on expected revenue based on three-quarters of the fiscal year, alongside recommendations for rate increases. Suggestions for gradual rate hikes of 5%, 6%, or 7% were discussed to build reserves and cover expenses while avoiding a sudden, burdensome increase that could reach up to 35%. The gradual approach was seen as a necessary strategy to prevent financial strain on residents, with built-in annual increases of 3% to 5% already considered.

A full-rate study was deemed unnecessary until after a complete year of operations, allowing the financial situation to stabilize. The committee planned to reassess the need for Bubani’s involvement in January, as many variables remain uncertain. Despite having some data, members recognized the need for a clearer financial picture.

The committee also tackled ongoing construction delays at the wastewater treatment plant, particularly concerning the delayed delivery of electrical switch gear due to material shortages and labor issues. The contractor was progressing with temporary panels, but the financial impact of these delays amounted to several hundred thousand dollars. There was a concerted effort to ensure contractors were coordinated to resolve outstanding items efficiently. Additionally, concerns were raised about a phosphorus issue related to a broken chemical line, necessitating ongoing monitoring and adjustments based on wastewater flows.

In parallel, discussions on potential rate increases occupied a substantial portion of the meeting. There was a proposal to consider a 5% increase for both water and sewer rates. The committee examined the implications of adjusting the base rate, which would impact all users, and debated whether a detailed rate study was warranted. However, consensus leaned toward waiting until a steadier user base emerged before committing to such an expenditure, which could cost around $50,000.

The committee also explored the annexation of township areas into the city, recognizing the implications for utilizing city services and the potential complexities of existing agreements between the township and city. The annexation discussions highlighted the importance of clarifying the process, whether initiated by property owner petitions or by the council.