Frequently Asked Questions

There are a variety of reasons, including environmental factors, resident interest in municipal water, and financial sustainability of the water fund. The water fund is an enterprise fund, meaning that those who benefit from the system pay for the system. It is not supported by taxes. Ensuring that investment in the current system is maximized promotes financial stability of the water fund, increases fairness among those benefiting from the system, and informs future decision making about the system.  

3,070 properties are billed for a variety of city utilities, including water, sewer, stormwater and recycling.  Of these, 1608 properties are billed for city water. 

Approximately 400 properties are not connected to city water but could connect.  

At its June 9th meeting the City Council considered nearly twenty different options to promote water connections.  It decided to focus attention on strategies in the following areas: 

Policy 

• Subdivision and New Construction – The City Council recently updated its ordinances to only permit the subdivision of property where city water is or can be made available to the new parcels.  City ordinance also requires connection to city water for all newly constructed homes.   
• Information and Communication – The City will provide more information about city water and available resources through its website, newsletter, and other outlets. 

Facilitate Connections

• Point of Sale and New Construction – In areas where water is available, require homes that are sold or newly constructed to connect to city water.   
• Connection Program – A streamlined process to complete and finance water connections.  The City obtains volume pricing for a contractor to connect multiple properties voluntarily to city water.  Property owners can finance the costs through an assessment.  

These concepts are currently being researched. The City Council will discuss and consider such programs at future meetings. 

Fees 

• Rate Structure - Modify the rate structure to include a base fee for system operations, add a conservation rate, and adjust usage fees.  
• Water Availability Fee – Charge the base fee to properties that have water available but are not connected to the system.  
• Infrastructure Fee – Charge an infrastructure fee to all other properties for water used to support city services and operations, supply public parks and buildings, and provide fire protection.  

The Council considered these fees as part of its 2026 budget process and set the fees in the Master Fee Schedule at its meeting on September 22, 2025. 

Base Fee 

This is a flat fee ($32.51) charged to pay for the fixed costs of maintenance and operation of the water system.  Currently only properties connected to city water pay this charge. Properties not connected to city water, but with water available to them, are proposed to be charged this Base Fee. The rationale is that there is a benefit to the property to have water available, including an alternative to a well and fire protection, and should therefore help to pay for the maintenance and operation of the system.  User fees would not be charged as there is no consumption of water. The Base Fee would not be charged to properties that do not have water available. 

User Fee

 User fees are charges based on the amount of water consumed. They are variable and structured in tiers so that customers using higher amounts of water pay a higher rate, which promotes conservation. The new fee structure breaks out the base fee and creates the tier of 0 – 5000 gallons. It also splits the tier of 5001 to 50,000 gallons into two tiers: 5001 to 25,000 gallons and 25,001 to 50,000 gallons.   

Water Availability Charge  

This one-time charge funds the initial investment to install the water system. The charge may be paid by developers or by a homeowner connecting to the water system and may be paid upfront or assessed to property taxes for payment over time.   The charge is currently $10,000 and has not been increased since 1995 but may be considered in the future. 

Infrastructure Fee 

A fee of $10/quarter would be charged to properties that do not have water available. The rationale for the fee is that municipal water supports all residents with public safety and fire protection, reduction in homeowner’s insurance, and access to water at public facilities for use, operations and maintenance work. This fee is scheduled to be implemented in 2027. 

In June 2025 the City accepted a Long-Term Financial Management Plan to guide funding decisions for the City’s operations, capital improvements and debt service.  The plan provides a model to determine the revenue needed to provide services and meet objectives in a strategic and fiscally responsible way.  The Plan used existing data, planned improvements, and policies in its development. The Plan can be found on the City’s budget webpage  or at the link below. The Summary and Introduction section includes discussion of Utility Rates on pages 5 – 6, and Figure 2 shows projected rate increases in both dollars and percentages. Rates are proposed to noticeably increase in 2026, and to a lesser extent in 2027, but the Plan anticipates increases leveling off in future years. 

Long-Term Financial Plan (PDF)

The City has had different policies at different times regarding the water connection charge, and different efforts to promote connection to city water.  

No. The City is not requiring homeowners to connect to City water. The concept of requiring connection to city water, if available, at the time a home is sold (point-of-sale) has been discussed but is currently not a requirement. A newly constructed home is required to connect to city water, if available. 

The City is studying a potential point-of-sale requirement to connect a home to city water, if it is available. Currently there is no requirement to connect, but homeowners and real estate professionals may want to check with the City if they are considering selling.  

The City has been discussing water connections and its 2026 budget much of the year. Communications of these topics have appeared in the ShoreReport newsletter, on the City’s webpage, in e-newsletters, on social media and email distributions. Ordinance amendments have included public hearings. There are webpages for the Municipal Water Strategy and the 2026 Budget. The Council has held work sessions throughout the summer of 2025 breaking down the different components of the City’s budget, including the Long-Term Financial Management Plan, the Fee Schedule, and the Enterprise Funds. Public comment at the work sessions, and one-on-one meetings with staff, have been offered.  

The Council is taking a graduated approach to water connections and focusing on tools and policies that make it easier for residents to connect. Other options and policies to increase water connections were discussed at the June 9, 2025, Council meeting and were not advanced, but could be considered in the future.