City of Shelley | minutes | meeting 2026-02-25 | Minutes - February 25, 2026 Work Meeting
source: https://cityofshelley.org/media/pllj1o2h/minwk022526.pdf

CITY OF SHELLEY
WORK MEETING
MINUTES

February 25, 2026

PRESENT: Mayor Kim Westergard

Council Members: Leif Watson, Don West (Zoom), Sean Kress, Louis Street
Department Heads: Justin Johnson, Jordon Johnson, Chad Purser

Deputy Clerk: Tori Pacheco

Others: Dave Noel and Ted Hendricks

The meeting was opened at 5:59 p.m.

This work meeting was held to discuss water rate increases, water meter rates,
and private water service line financing.

Dave gave a summary from the previous meeting on the different options and the
one that was talked about more was the $57 flat rate and about $2.00 per
thousand gallons used. Ted mentioned that he was worried that the $57 per ERU
may not cover all of the cost and also about the city not reading the meters and
only bill on the bas for two to three years until all meters are in because currently
the city does not charge water meters the same as sewer. The recommendation is
to adopt the $57 base rate and $2 per thousand gallons used over 5,000 for
residents. The other would be to recalculate businesses and assign a user rate
similar to sewer demands and they used Golden Vally as an example. They
currently have 14 sewer ERUs and the city may want to charge for 14 water ERUs.
Another example was the schools, if they have 47 ERUs possibly charge for the 47
water ERUs. Dave recommends the sewer ERU and water ERU be the same
because ERUs are based on domestic use. The third recommendation is wo
implement option two and those who currently have meters pay the new rate
and unmetered will pay the new base rate only. Those unmetered would read
meters in phases or wait until project is done and then read all at once. Ammon
did theirs in phases, read the meters but didn’t charge for one year. Justin
mentioned to not charge anyone until the end of the project and then give one
year after the last meter is installed. Mayor Kim mentioned giving a year per
phase. Sean asked if there were any other fees connected to the $57 besides the
§2.00 per thousand gallons over 5,000.Ted said that the $55 will only pay the debt

Work Meeting — February 25, 2026

and fund the reserve. Sean gave examples of other city rates and most do not
offer free water; residents are charged base fee plus flow rate per thousand
gallons. Sean asked if we were to charge $57, we should charge flow rate and not
give first 5,000 gallons free. Justin mentioned to Sean that the idea of the base
rate plus 5,000 gallons came from him and he thought it would help roll into the
project versus base rate plus the flow rate. Dave said that the city would need to
have an average collection of $76 per ERU is needed to pay for all of the
infrastructure. Sean mentioned about having the base rate at $57 and $2 per
thousand gallons after 5,000 for everyone on meters already and offer the “free”
water to residents only. Commercial would not have the “free” water. It was also
suggested about charging the $57 and $2 per thousand gallons after 5,000 for
residents would be charge $55 and for $1.75 for commercials. Home businesses
could be billed to pay the base rate and $1.75 per 1,000 gallons, they are already
metered and already know the flow with no grace period. It was mentioned that
council could not make a decision in this meeting.

Dave mentioned that financing for the private water service line is covered. Dave
recommended to putting this into the project to allow people to put the meter
where it needs to go. Have this be a one-time deal and when the road is done, the
contractor will not go back. Louise asked if they had to meet certain criteria. It
was mentioned that the lines must be galvanized/copper/PVC pipe. If poly line
must come from somewhere else. The line from the city would connect to existing
line unless it is not wanted.

Adjourned: 7:17 p.m.

APPROVE: WO steye.Q arrest Zi sia sha

Work Meeting — February 25, 2026