The Lake View City Council reviewed an initial financial report regarding the city’s utilities and will look at increasing rates for sewer, water, and electrical usage. The report was completed by financial service company, Piper Sandler, who reviewed current revenue and proposed future expenditures with upcoming projects, such as the lift-station. Piper Sandler’s Managing Director for Public Finance, Travis Squires, says Lake View is not the only city that is facing the need to increase rates, as other communities need to do the same for many reasons.
Waste water rate increase is recommended to build up revenues by 15 percent, or to decrease expenses by $65,000. If rates do increase by the recommendation, a customer in Lake View has an average bill of $60 per month, it would be an additional $9 per month with the 15 percent increase. Squires says this would be mainly due to debt service, as the city’s revenues need to be 110 percent to debt obligations.
Squires said for water, aside from the three percent increase last year, rates stayed the same from 2015 to 2023, which he says the accounts now need to play catch up. The city has tentatively approved of a 5 percent increase going into Fiscal Year (FY) 2026, but Squires says a with the well project looking to be completed, the city might have to “bite the bullet” and increase rates more.
Several electric utility projects are proposed in the future, with Squires estimating approximately $4 million needing to be borrowed. The city currently has existing debt that runs around $110,000 per year in cost, which would increase to $317,000 if additional funding is placed on a loan. Squires says while a rate increase for electrical could hold off, he recommends more modest increases over time instead of all at once.
No action was taken, but council members will continue to review the numbers and update current ordinances based on recommendations and the city’s financial needs.
