Homer sets policy framework for future water and sewer rate changes

The Homer City Council adopted a resolution Tuesday setting the policy foundation for how the city will recover costs and prioritize capital projects for its water and wastewater utilities. The action positions Homer to adjust rates for every household and business on city water and sewer service within city limits and connected service areas.

The resolution does not set a new rate schedule or name specific percentage increases. Ratepayers connected to Homer's city water and sewer system are unlikely to see immediate changes on their bills. The concrete impact will come through separate rate ordinances that follow from this framework.

The resolution adopts the 2026 Amendment to the Water and Wastewater Utility Financial and Rate Setting Policies and Utility Financial Plan. City administration recommended the action through a staff memo, citing the need to align utility revenues with operating costs, capital needs, and debt service requirements. The changes are intended to ensure the long-term sustainability of Homer's water and sewer systems.

Ratepayers and businesses should watch for subsequent rate ordinances the council introduces under the new framework.