Sean C. Morgan
The Sweet Home Public Works Department will not seek water and sewer rate increases in its next budget.
The city Budget Committee reviewed Public Works funds on May 11 prior to approving a budget recommendation for the City Council, which must adopt a 2011-12 budget by the end of the fiscal year on June 30.
“Although rate increase adjustments may still need to take place in future years, primarily due to increased debt service, the existing rates are adequate to pay for the current debt service we are required to pay each year as well as to receive funds on future principal payments we have not yet utilized but are available for use,” said Director Mike Adams.
The city’s water fund will begin with a cash carryover of approximately $500,000 and collect approximately $1.6 million in user fees.
Expenditures will increase from about $2 million to $2.1 million, reflecting an increase of about $23,000 in personnel costs, from $469,000 to $492,000, and $14,000 in materials and services, from $604,000 to $618,000.
Spending reductions include $82,000 in transfers to other funds, from $440,000 to $358,000, reflecting a $50,000 reduction funds to the water capital construction fund, to zero, and $40,000 less in transfers to project and equipment reserves, from $65,000 to $25,000.
Debt service will increase from $496,000 to $618,000, reflecting payments on the new water treatment plant. The city will pay off one debt in one more year, reducing annual debt payments by more than $118,000.
The wastewater funds are in similar condition, Adams said, and the existing rates are adequate.
The city will begin with an $846,000 carryover and collect $1.8 million in user fees, for a total of about $2.66 million in revenues.
Personnel costs will increase by $14,000 to $554,000, while materials and services costs will decrease from $591,000 to $580,000.
Transfers to other funds will increase by $43,000 to $494,000, reflecting an increase in operating contingency funds.
Debt payments will increase by $20,000 to $1,011,000.
Debt in the wastewater fund is mostly for repairing and replacement of deteriorating pipes over the past decade. The repairs have been made to reduce inflow and infiltration, which is water that leaks into the sewer system through leaky pipes and cross connections with the storm drainage system.
The budget includes $75,000 for construction of a water fill station, Adams said. People are not allowed to fill water containers at fire hydrants without a permit.
People steal water that way anyway, potentially breaking them, he said, although he doesn’t know how often it happens. This way, the city can account for water being used.
The station may also be used during emergencies if water reserves are compromised, said City Manager Craig Martin. The city does receive requests from members of the public who want to fill containers. Right now, the city allows them to use a hose at City Hall.
The budget next goes to the City Council for final approval. For more information or to view the budget document, visit City Hall, 1140 12th Ave.