Ordinance 2026-02 amends multiple sections of the Republic Municipal Code to adjust water and sewer service charges, introduce a small late-fee structure, and reallocate funds previously dedicated to USDA debt service. The City has paid off its USDA loans and will remove the $15.55 debt service fee, close Funds 406 and 407, and transfer their balances to the main Water & Sewer Fund (Fund 401), while increasing base water and sewer rates and expanding the surcharge to Fund 409 starting August 1, 2026. Clerk-Treasurer Nick Olsen explained that the rate changes will redirect what residents were paying in debt service into operations and reserve funds for future water/sewer projects, aiming to reduce reliance on future borrowing and interest costs. This is a clear signal that Republic is building financial capacity for upcoming water and sewer capital work, such as system upgrades, replacements, and regulatory compliance projects. Vendors in utility engineering, construction, asset management, and funding strategy can engage early to help the City translate this enhanced revenue into a prioritized capital plan and shovel-ready projects.

The ordinance and prior discussion explicitly connect rate changes to creating reserves for future w...