Council weighs five years of water rate increases and a storm drain fee hike to $12.50
March 3, 2026, 4:00 p.m. · City Administration Conference Room, 51 E. Main St.
Staff proposed culinary water rate increases of 12% the first year, 9% the next two and 8% the two after, and a new metered pressurized irrigation structure with a base rate tied to lot size, noting the city has spent over $9 million on irrigation meters and about $21 million on water projects in two years. The storm drain base fee would rise from $10.50 to $12.50 to start closing a $154 million long-term storm water need. Members also reviewed special events rules and a business license code rewrite.
From the approved minutes.
Decisions at a glance
| Item | Result |
|---|---|
| Water rates | Discussed |
| Special events | Discussed |
| Storm drain fees | Discussed |
| Business license code (Chapters 5.04, 5.42, 5.44) | Discussed |
Agenda, item by item
Item 1 · Taxes and fees
Water rates
Discussed
Finance Director Anna Montoya reviewed rate history: the pressurized irrigation meter project cost over $9 million and was grant-funded after the city acted early; about $21 million was spent on culinary and PI projects in two years; fund balances are about $10 million (culinary) and $7 million (PI). Proposed culinary increases: 12% in year one, 9% in years two and three, 8% in years four and five; current residential base $16.49 plus $3.59 per 1,000 gallons; non-residential base $18.14 plus $3.15. Councilmember Hunter noted the non-residential rate is below the residential Block 2 rate of $3.53. The PI proposal uses a base rate of $18.50 scaled by lot square footage; staff recommended not creating separate shareholder rates yet and starting new PI rates Jan. 1, 2027. Councilmembers warned delays only widen the gap with recommended rates. Snowpack was about 88% of normal but only about 63% of the median peak.
- PI meter project: over $9 million, grant-funded
- Culinary increases: 12%, 9%, 9%, 8%, 8%
- PI start: Jan. 1, 2027
Item 2 · City code
Special events
Discussed
Discussion of special event definitions and permits; the item was to come back for clearer language (adopted May 12).
Item 3 · Taxes and fees
Storm drain fees
Discussed
Staff proposed finishing the increases recommended by a 2021 study, raising the storm drain base rate from $10.50 to $12.50. The storm water master plan lists about $57 million in projects ($43 million in the first 10 years, $9-10 million impact-fee eligible) and about $154 million in total needs; the fund has over $5 million in balance. Adopted April 14.
- Base rate: $10.50 → $12.50
- Long-term storm water needs: about $154 million
Item 4 · City code
Business license code (Chapters 5.04, 5.42, 5.44)
Discussed
Legal counsel Heather Schriever proposed moving license denial, suspension and revocation decisions to an administrative process, clarifying bonds (such as $1,000 and $2,000 for certain businesses including lenders), and possibly splitting the $200 license fee, which does not cover costs.