Capital Targets Discussion Series & City Service Bill Rate Impacts
Beginning in August 2023, Council kicked-off a months-long discussion series aimed at balancing financial needs and means for capital projects in our Water, Sewer, Stormwater, and Street systems. Not surprisingly, the financial resources required to fund identified needs far exceed the financial resources currently available in each service area.
After a series of nine presentations, Council identified initial “capital targets” within each service and identified a transition plan to achieve those targets over a five-year period. When referencing “capital targets” we are referring to the amount of infrastructure investment we intend to pursue, and the amount of revenue required to achieve that investment.
Property taxes aren’t used to fund activities related to utilities and streets. The primary funding sources are state gas tax revenue shared by the state and City service fees paid by community members. While staff takes advantage of grant opportunities and is always looking to improve efficiencies to stretch existing funds as far as possible, we can’t rely on these approaches to close gaps in revenues required to address our growing infrastructure needs.
As a result, the five-year transition plan relies on adjustments to rates charged for City services. When considered in the context of a total monthly city services bill for an average residential customer, the transition plan envisions increases of 4% per year for each of the five years in addition to standard inflationary adjustments.
Council is sensitive to rate adjustment impacts on community members and selected a capital target that addresses our most pressing needs, not all our needs. Council considers adjustments annually with adjustments typically being effective in February. Council will consider the year-one adjustment of the five-year transition in late 2024, to be effective in early 2025.
Council desires raising awareness prior to formal action on rate adjustments. This webpage is one tool being used for that purpose. The links below provide additional information about the discussion series and how to engage with Council on this topic.
Discussion Series Presentations and Deliberations
Open House Opportunities with Council
