Rising health insurance costs, employee wages and aging infrastructure could mean higher bills for residents next year as the Meeker Sanitation District considers a $10 monthly service charge increase.
During its Oct. 7 meeting, the district board discussed maintaining its current PPO health insurance plan at an additional cost of approximately $34,000 in 2027. The district has five employees.
The board reviewed alternative health plans that could reduce district expenses but opted to retain existing coverage. The three members present unanimously approved continuing the current health insurance plan, including dental and vision benefits, and granting employees 3.5% raises. Board members Mike Hoke and Charlie Day were absent.
The wage and insurance increases are expected to add approximately $60,000 to the district’s annual expenses.
District Office Manager Rachel Willey presented financial projections comparing $5 and $10 monthly increases. Under the $5 scenario, the district’s financial outlook would fall into the red within three years, while the $10 increase would provide greater financial stability over the next five years, though neither would fully address projected capital needs.
An additional $10 service charge would bring the standard monthly rate to $50, a 25% increase. The district last raised rates in April 2020, from $35 to $40. The district is also reviewing increases to bulk water rates and charges for usage exceeding the monthly 8,000-gallon allowance.
“Every time we do a rate increase, it just covers expenses,” Willey said. Board members said previous increases have left little available to build reserves for aging infrastructure and capital improvements.
The district’s capital improvement plan identifies approximately $12 million in projects over the coming years, including pump replacements, sewer line repairs and other improvements. A preliminary financial analysis estimated the district would need an additional $507,000 annually over five years to address just a portion of those projects.
Plant Manager Kurt Nielsen also described ongoing sewer line problems, including repeated backups affecting homes despite regular maintenance.
Staff will incorporate the proposed $10 increase into the budget for further board review. A public hearing will be required before new rates are adopted.