The key agenda item for the December 1 City Council meeting was once again water rates. However, after lengthy discussion, multiple attempts and by a slim majority, the suspense ended with the adoption of the new water rates.
Alderman Travis Allen asked a couple of clarifying questions to help explain what city leaders have struggled with for the past 6 months, and gave council members a chance to discuss their views in open session. The City’s water department is losing in excess of $500,000 a year under the present rate structure and will continue to operate at a loss unless rates are increased. Further, most members of council believe that expenses have been cut to the point that no additional savings would produce a material reduction. One member asked if any stone had been left unturned looking for savings and Allen responded with a hypothetical that “we could terminate every employee in the department, and we would still operate at a loss,” setting the tone for the remainder of the session.
Two rate options were discussed and are referred to below in the table labeled Exhibit A. The options are identified as Scenario 6 and Scenario 6A below. A third Scenario (4), which would have increased rates more than either Scenarios 6 or 6A was not discussed and did not have any backing.
