Ordinance No. 2025-520 – An Ordinance Amending the Municipal Code of Tiffin, Iowa, Section 92.02 of Chapter 92, Rates for Service — Item Packet

AGENDA ITEM # H-1 AGENDA INFORMATION TIFFIN CITY COUNCIL COMMUNICATION DATE: July 1, 2025 AGENDA ITEM: Ordinance 2025-520 – Water Rate Increase 2025 ACTION: Motion to Pass and Adopt Background This ordinance was introduced and approved on first reading on June 3, 2025, and passed its second reading on June 17, 2025. The proposed amendment adjusts both the base rate and the flow (usage) rate for municipal water service. Rate adjustments were recommended following an internal review of current water revenues, operating expenses, and capital needs associated with Tiffin’s water infrastructure, maintenance, and long-term service delivery goals. Water Rate Schedule Effective July 1, 2025: • Base Rate: $15.00/month (up from $7.00) • Flow Rate: $5.75 per 1,000 gallons Effective July 1, 2026: • Base Rate: $15.00/month • Flow Rate: $7.85 per 1,000 gallons Effective July 1, 2027: • Base Rate: $15.00/month • Flow Rate: $10.15 per 1,000 gallons Justification for the Rate Increase • Maintain System Sustainability: Ensures the City can meet the rising costs of water treatment, distribution, and maintenance. • Support Future Growth: Helps prepare for system expansions required by Tiffin’s continued residential and commercial development. • Align With Regional Trends: Adjustments bring Tiffin’s rates closer to those of similarly sized and neighboring communities. • Avoid Reactive Hikes: This phased model prevents sharp, sudden increases by forecasting and spreading out revenue needs. 1