Paul Rodgers, vice-chairman of the WMU Commission said officials and staff have met over the past several weeks to consider options in WMU’s rate model and now believe improvements to water infrastructure can be divided into three phases.

The new timetable would distribute spending through year 2015 — several years longer than original proposals.

Officials are also considering options on borrowing and project scheduling that could change the final rate formula.

They plan to meet Monday afternoon for another round of review, but cautioned that rate increases will remain substantial despite the outcome of talks.

“What we are talking about are numbers that are not firm,” said Mayor Ed Burtner. “Generally speaking, … the rates are going to go up, and they are going to go up a significant amount.”

In November, the WMU Commission asked the Winchester Board of Commissioners to approve a new rate plan that would essentially double the cost for in-city customers, who use water, sewer and solid waste. Out-of-city customers who receive water and sewer services would see a similar increase.

WMU Commissioners said the rate changes are necessary to fund more than $110 million in upcoming capital projects.

About half of the upgrades are mandated under a federal consent decree with the U.S. Environmental Protection Agency to mitigate violations of the Clean Water Act.

City and WMU commissioners also voted in 2008 to build a new water treatment plant and related infrastructure, which will total around $59 million.

The city commission reviewed WMU’s rate request in December and asked utility officials to revamp certain aspects of the proposal before a vote on the matter.

“We’ve made some really good progress on this,” Rodgers said.

In other business,

— The WMU Commission approved a $568,000 contract with Utility Service Company of Perry, Ga., to paint and rehabilitate an elevated storage tank in the Winchester Industrial Park.

A $637,000 contract with Lagco, Inc., of Lexington, was approved for the Vaught Road Outfall Sewer project in the Lower Howard’s Creek Watershed.

WMU is using federal stimulus funds to pay for the projects. The Kentucky Infrastructure Authority agreed to provide the funds as low-interest loans with 50 percent debt forgiveness upfront.

— Mike Wynn