Utility rates remain unchanged – for now

The Sundance City Council tabled the question of utility rates at January’s regular meeting, preferring to wait for more information about the current situation within the city’s enterprise accounts.

Because enterprise accounts like sewer and water are required to pay for themselves, the city has been generally following the advice given during a rate study performed in 2008 that rates should increase by a modest amount each year.

However, at Tuesday’s meeting, the council did not have the figures available to know how the enterprise accounts are faring. Clerk Treasurer Theresa Curren was asked to compile information about the current rates and what increases have been imposed over recent years.

Last year, the council opted to follow a recommendation from then-Clerk Treasurer Kathy Lenz for a 4% increase across the board, which was expected to create an increase of around $35,000 for the city budget to cover expenses.

This was the first time an increase had been imposed since 2019, when a 6% rise was considered necessary to ensure the enterprise accounts were paying for themselves and compensate for the loss of the sixth cent tax as it ran its course.

On Tuesday, Public Works Director Mac Erickson threw a potential wrench into the works when he suggested that the city might want to consider a new rate study.

Erickson noted that the recommendation is to perform a new rate study every ten years. It can be an important feather in the city’s cap, he told the council, as being able to say the city is up to date on its rates can affect such things as grant applications.

He suggested that the council consider including funding for a new rate study in this year’s budget.

In response, Council Member Joe Wilson wondered whether the council should wait until the study is complete to tackle utility rate increases.

The council opted to table the conversation until the next meeting, when the information has been compiled and council members will be able to make more informed decisions on the matter.