City Council Agenda & Packet Summary – City of Johnston – August 3, 2026

Meeting Information

• Public Body: City of Johnston
• Organization Type: municipality
• Government Body: city-council
• Meeting Title: Work Session
• Meeting Date: 2026-08-03
• City: Johnston
• County: Polk County
• State: iowa
• Meeting Source URL: https://go.boarddocs.com/ia/cojia/Board.nsf/Public?open&id=DRWLTE56F015&unid=6B10B40307CF457985258DB20056F015
• Meeting Listing URL: https://go.boarddocs.com/ia/cojia/Board.nsf/Public
• Public Body Website: https://www.cityofjohnston.com/238/City-Council-Mayor
• Meeting Video URL: https://www.youtube.com/user/cityofjohnston/videos
• Video Channel URL: https://www.youtube.com/user/cityofjohnston

What Community Members Should Know

This work session is focused on two long-range utility planning issues rather than routine city business: the City's Stormwater Management Plan and a preliminary discussion of future water rates and connection fees associated with the Highway 141/NW Saylorville Drive growth area. The available packet materials primarily consist of a detailed financial presentation prepared by PFM Financial Advisors regarding future water infrastructure funding.

The largest topic is how Johnston should recover the cost of extending water infrastructure to serve anticipated development along the Highway 141/NW Saylorville Drive corridor. The study estimates approximately $12.8 million in infrastructure investment will be required and evaluates different combinations of one-time development connection fees and ongoing water surcharges to recover those costs over an approximately 30-year build-out period.

Residents already receiving water service should pay attention because the discussion considers future water service availability charges, water usage rates, irrigation pricing, and a possible area-specific surcharge structure. While the recommendations are presented as preliminary discussion items, they illustrate how future development costs could be allocated between new development and utility customers within the affected service area.

The meeting also includes discussion of the City's Stormwater Management Plan. Although the extracted packet contains only the agenda listing for that topic and does not provide supporting technical materials, the discussion indicates continued review of long-term planning for stormwater infrastructure and management.

Major Discussion and Action Items

Stormwater Management Plan

The agenda schedules discussion of the City's Stormwater Management Plan as one of only two substantive work session topics.

Based on the available packet text, this appears to be a policy discussion rather than a formal action item. No supporting report was included in the accessible extracted materials, so the packet does not describe specific proposed changes, capital projects, regulatory requirements, or implementation recommendations.

Residents should nevertheless recognize that stormwater planning typically affects future drainage improvements, flood mitigation, environmental compliance, and long-term capital planning.

Water Infrastructure for Highway 141/NW Saylorville Drive

The principal discussion concerns financing water infrastructure needed to support future growth in the Highway 141/NW Saylorville Drive service area.

PFM estimates infrastructure financing totaling approximately $12.8 million, consisting of previously issued debt for Segments B and C together with anticipated financing for Segment A. The study evaluates how those costs could be recovered from future development and utility charges rather than being borne entirely through existing system revenues.

The presentation assumes approximately 820 developable acres and projects approximately 2,786 total future water connections, including approximately 2,004 regular connections and 782 irrigation connections.

Council discussion is expected to focus on balancing development charges with ongoing utility rates while ensuring sufficient revenue to recover infrastructure costs over the projected development period.

Proposed Water Connection Fees

The study evaluates several possible development connection fee scenarios.

Illustrated examples include connection fees ranging from approximately $5,500 to $6,500 per developable acre.

Higher connection fees recover more infrastructure costs from new development immediately, while lower connection fees require larger ongoing utility surcharges over time.

PFM ultimately presents a preliminary recommendation centered on a $6,500-per-acre connection fee combined with recurring monthly surcharges.

Future Water Rate Structure

The packet reviews both current rates and previously proposed future water rates.

Current FY 2027 inside-city residential water rates are listed as:

• $8.65 per 1,000 gallons
• $11.64 monthly service availability fee

Outside-city customers pay higher volumetric and service availability charges.

The presentation also reviews previously discussed FY 2028 through FY 2030 rate adjustments, including increases in monthly service availability charges and water usage rates together with revised irrigation pricing.

Highway 141 Area Surcharge Proposal

A significant policy question is whether customers within the Highway 141/NW Saylorville Drive development area should pay additional area-specific charges beyond standard citywide water rates.

PFM models a surcharge structure that combines:

• Monthly fixed meter charges
• Additional volumetric charges per 1,000 gallons
• Separate irrigation surcharges

The objective is to recover infrastructure costs over the projected development period while matching revenue generation with anticipated customer growth.

Long-Term Growth Assumptions

The study relies on long-term development assumptions including:

• Approximately 820 developable acres
• Approximately 30-year build-out
• Roughly 93 new connections annually
• Approximately 5,497 thousand gallons of annual water demand associated with new development assumptions

These assumptions directly influence projected infrastructure recovery and utility pricing.

Financial Matters

The packet's financial discussion centers almost entirely on future water infrastructure financing.

Key financial figures include:

• Approximately $12.8 million in projected water infrastructure financing.
• Approximately $9 million associated with Segments B and C.
• Approximately $3.8 million anticipated for Segment A.
• Weighted estimated borrowing cost of approximately 3.33%.

PFM compares multiple funding strategies combining:

• Development connection fees.
• Monthly fixed utility surcharges.
• Volumetric water charges.
• Irrigation surcharges.

The preliminary recommendation includes:

• $6,500 connection fee per developable acre.
• $4 monthly surcharge per water meter.
• $2.11 surcharge per 1,000 gallons of metered water use.
• Irrigation surcharge beginning at $2.64 per 1,000 gallons for the first usage tier and increasing for higher consumption.

The study projects that this combination would allow recovery of infrastructure costs over approximately 30 years while supporting anticipated development.

The presentation also compares Johnston's projected water bills under various scenarios with surrounding central Iowa communities to provide context for affordability.

Policies, Ordinances, Resolutions, and Governance

No ordinances or resolutions appear scheduled for formal adoption within the accessible work session packet.

However, the presentation includes an example ordinance structure illustrating how recommended Highway 141 area water rates, service availability fees, and irrigation charges could eventually be incorporated into municipal code if the Council later chooses to proceed.

Because this is presented during a work session, the discussion appears intended to provide policy direction before any formal legislative action.

Reports, Presentations, and Informational Updates

The primary informational presentation is the Water Rate Study prepared by PFM Financial Advisors.

The report reviews:

• Existing water rates.
• Previously discussed future rate adjustments.
• Infrastructure costs.
• Growth projections.
• Financing assumptions.
• Connection fee alternatives.
• Long-term revenue projections.
• Comparisons with neighboring utilities.
• Preliminary recommendations.

The packet also includes discussion of the Stormwater Management Plan, although supporting analytical material was not available in the extracted text.

Personnel, Appointments, and Organizational Matters

The accessible packet does not identify significant personnel actions, appointments, employment agreements, resignations, or organizational restructuring.

The discussion appears focused on utility planning and infrastructure policy rather than staffing matters.

Projects, Facilities, Infrastructure, and Operations

The Highway 141/NW Saylorville Drive water expansion represents the most significant infrastructure topic.

The project involves extending water infrastructure to accommodate anticipated future development throughout the service area.

The study evaluates financing for multiple infrastructure segments while estimating future customer growth and utility demand.

Operational considerations include:

• Water distribution capacity.
• Future service connections.
• Irrigation demand.
• Cost recovery.
• Long-term utility sustainability.

The Stormwater Management Plan also relates to future infrastructure planning and municipal operations, although detailed project information is not included in the available packet.

Public Hearings and Opportunities for Community Input

This meeting is identified as a work session emphasizing discussion.

The agenda provides Zoom participation information for members of the public wishing to observe or participate.

The accessible packet does not identify scheduled public hearings, zoning cases, or statutory notice hearings associated with these discussion items.

Future ordinance adoption or utility rate changes would likely involve additional public consideration if advanced beyond the work session stage.

Community Impact

Residents should understand that the discussion could influence future water bills, particularly if area-specific surcharges or broader utility rate adjustments are ultimately adopted.

Future developers and property owners within the Highway 141/NW Saylorville Drive corridor could be directly affected through revised water connection fees and infrastructure cost recovery requirements.

Existing utility customers may be interested in how the City balances infrastructure funding between new growth and ongoing ratepayer contributions.

Long-term infrastructure investment is intended to support continued growth while maintaining reliable utility service and ensuring infrastructure costs are recovered over time.

Stormwater planning may also influence future drainage improvements, infrastructure investments, and environmental management, although specific impacts are not described in the accessible materials.

Questions Community Members May Want to Ask

• Why was a $6,500-per-acre connection fee identified as the preliminary recommendation?
• How much of the $12.8 million infrastructure cost would be paid by new development versus existing ratepayers?
• Would proposed surcharges apply only within the Highway 141/NW Saylorville Drive service area?
• What assumptions are most important to the projected 30-year cost recovery model?
• How sensitive are the projections if development occurs more slowly than expected?
• How will future rate increases affect average residential customers compared with current bills?
• What alternatives were considered for financing the infrastructure?
• What elements of the Stormwater Management Plan require Council direction?
• When would any proposed ordinance or utility rate changes return for formal Council consideration?
• What additional public engagement opportunities will occur before implementation?

Important Dates, Deadlines, and Next Steps

• August 3, 2026: City Council Work Session discussing the Stormwater Management Plan and Water Rate Study.
• FY 2027: Current utility rate schedule referenced for comparison.
• FY 2028–FY 2030: Previously proposed utility rate adjustments evaluated throughout the presentation.
• Approximately 30-year build-out: Planning horizon used for projected infrastructure recovery and future development.
• Future Council meetings: Formal ordinances or rate changes would require additional Council action if advanced beyond this preliminary discussion.

Key Takeaways

• The work session centers on stormwater planning and future utility financing.
• Approximately $12.8 million in water infrastructure is projected for the Highway 141 growth area.
• PFM prepared the financial analysis supporting Council discussion.
• Approximately 820 developable acres are assumed in the study.
• Approximately 2,786 future water connections are projected.
• The preliminary recommendation includes a $6,500-per-acre connection fee.
• Additional monthly and usage-based surcharges are proposed for discussion.
• The study models approximately 30 years of infrastructure cost recovery.
• Future utility rates and irrigation charges are evaluated through FY 2030.
• No final ordinance adoption is documented in the accessible work session materials.

Official Sources

• Meeting source: https://go.boarddocs.com/ia/cojia/Board.nsf/Public?open&id=DRWLTE56F015&unid=6B10B40307CF457985258DB20056F015
• Meeting listing: https://go.boarddocs.com/ia/cojia/Board.nsf/Public
• Public body website: https://www.cityofjohnston.com/238/City-Council-Mayor
• Meeting video: https://www.youtube.com/user/cityofjohnston/videos
• Video channel: https://www.youtube.com/user/cityofjohnston

About the Public Body

• Name: City of Johnston
• Organization type: municipality
• Government body: city-council
• Location: Johnston, iowa
• County: Polk County
• Provider: boarddocs

Keywords

City of Johnston, Johnston City Council, Work Session, August 3 2026, Stormwater Management Plan, Water Rate Study, PFM Financial Advisors, Highway 141, NW Saylorville Drive, water infrastructure, connection fees, utility rates, irrigation rates, service availability fee, infrastructure financing, capital planning, water surcharge, development, utility planning, growth corridor, water main, build-out, municipal utilities, Polk County, Iowa, water ordinance, rate study, public infrastructure, water connections