City Manager Matthew Cobler provided an overview of the fiscal year 2024-2025 utility budget, revealing a total of $5,512,190 in balanced expenditures and revenues, reflecting an increase from the previous fiscal year’s budget of $5,254,566. A key component of this budget is a planned 6% increase in water rates for fiscal year 2025, following a utility rate study conducted in June 2023. Cobler expressed concerns about the city’s ability to accurately predict revenue numbers.

The discussion then shifted to sewer rates, where it was noted that a recommended 13.5% increase for fiscal year 2025 had been adopted in the previous budget. Cobler highlighted the importance of investigating these trends before finalizing the budget to understand whether they represent a one-time issue or a longer-term concern. Proactive communication with external suppliers was suggested to ensure any potential rate increases are integrated into the city’s budgeting process.

Cobler also noted an increase in interest revenue from the city’s bank holdings, projecting an additional $50,000 over the prior year. The budget would utilize about 12% more reserves than the current fiscal year, with a focus on ensuring funds are available as needed without overspending. On the expenditure side, a notable allocation of $50,000 was set aside for a water distribution master plan, alongside an increase in funding for meter equipment from $75,000 to $100,000. This increase is aimed at replacing approximately 400 non-functioning water meters, which have led to lost revenue for the city.

An in-depth discussion centered around the city’s water meters, many of which had not been registering usage for extended periods, some dating back as far as 11 years. Cobler explained that the budget constraints limited the number of meters that could be replaced at one time. The city had made progress in reducing the number of meters requiring physical reading, decreasing from over 400 to 205 as of the latest report. Concerns were raised about the reliability of the existing meter reading technology, which had been in use for over a decade. The brand Census was mentioned, with challenges in programming and data retrieval being acknowledged.

The council also addressed the financial implications of the sewer budget, including a $50,000 allocation for a sewer collection master plan and a bond principal payment of $130,000. There was confusion about the exact amount remaining on the bond, with estimates varying between $1.7 million and over $2 million. The council acknowledged the need for improved clarity in financial reports and the assurance that payments were being made as scheduled.

Further discussions highlighted the water main replacement strategy, which involves utilizing PVC lines beneath roads to maintain road integrity while allowing for easy replacement. The focus was on replacing outdated six-inch and two-inch lines, particularly in the waterfront area, to prepare for future developments and improve service reliability. The city is poised to receive the aforementioned significant grant for the new water treatment plant, with recent developments indicating that the 2% administrative fee previously required would no longer apply. This change allows for the full amount to be utilized for the project without additional financial burdens on the city.

Concerns were also raised regarding the residents’ awareness of ongoing efforts to improve water quality. It was suggested that the city should communicate its progress and plans to the community to foster understanding and mitigate frustration regarding water quality issues.

The meeting revealed a concerted effort to address both immediate and long-term infrastructure needs through careful planning and budget management. The dialogue emphasized the necessity of enhancing communication strategies within the city to ensure that residents are informed of both the challenges and the ongoing efforts to address them.