City officials propose rate increases to address infrastructure needs and financial sustainability

In the quaint city of Osage Beach, Missouri, nestled along the shores of the Lake of the Ozarks, residents and city officials are grappling with the need to fund critical improvements to its water and sewer systems. The city, known for its scenic beauty and recreational opportunities, has seen its water and sewer infrastructure age, with the sewer system being built in the 1980s and the water system in the early 2000s.

Recent public hearings and discussions among city officials have highlighted the urgent need for significant investments in the water and sewer systems to maintain safety, compliance, and overall operational efficiency. The city’s sewer system serves nearly 7,100 users, while the water system serves nearly 6,100 users. Over the past four years, the number of utility users has grown 6% in both systems, adding to the strain on the aging infrastructure.

Economic factors such as inflation, supply-chain issues, and the unprecedented increase in the costs of equipment, materials, and labor have contributed to an increase in system expenditures and use of financial reserves. The city’s water system produced nearly 380 million gallons of water for users in 2023, while the sewer system handled over 352 million gallons of waste.

To address these challenges, the city has proposed a 34% aggregate increase in water rates and an 85% aggregate increase in metered and non-metered sewer rates. The proposed changes are set to take effect on July 1, 2024, following approval by the Board of Aldermen. The increases are aimed at ensuring the city can operate, maintain, and improve the water and sewer systems, as well as replenish adequate reserves and generate sufficient revenues for overall system operation and maintenance.

City officials have acknowledged the potential financial impact on residents but argue that the rate increases are necessary to address the critical infrastructure needs and ensure the long-term sustainability of the water and sewer systems. Public hearings and workshops have been held to discuss the proposed rate changes and their impact on residents, with city officials emphasizing the importance of maintaining safe and reliable water and sewer services for the community.