Rockport city leaders on April 15 heard projections that the city’s utility system is losing tens of thousands of dollars each month and could see those losses triple without water rate adjustments, prompting continued discussion of phased increases and long-term water planning.
Finance Director Robbie Sorrell told the Rockport City Council that the city’s utility system is currently operating at a loss and that delaying rate increases would worsen the deficit. According to Sorrell, Dan Jackson of Wildan Financial Services said the utility system is losing about $50,000 per month, and is expected to climb to $150,000 loss per month in Fiscal Year 2027.
Sorrell explained the projections were based on modeling conducted as part of the city’s water rate study and reflected rising costs and anticipated debt obligations tied to utility infrastructure. The presentation was provided as a follow-up to questions raised during the council’s March 24 meeting regarding whether proceeds of over $4 million from the city’s gas system sale could offset rising water costs…