Sean C. Morgan
Of The New Era
City of Sweet Home utility rates are on track for a fairly small increase overall this year, including a decrease in water rates, according to city officials.
But increases in sewer rates and the implementation of the storm water drainage utility rate will more than offset that decrease, resulting in an overall increase in rates.
Public Works Director Mike Adams will plug proposed rates into his budget this month, allowing members of the city’s Budget Committee input on the rates before they are set by the City Council.
A spreadsheet, which calculates the residential rates the city needs to charge to pay for the full cost of operating its utilities, indicates that the city’s water rates could be decreased by 33 cents per hundred cubic feet while the base water charge would go up by 30 cents to $17.99, which includes the first 400 cubic feet of water for residential customers.
Adams presented the rate calculations at a council work session on April 1.
The water rates are not appreciably affected by the water treatment plant construction scheduled to begin this year, Adams said. The costs for the $10 million project will show up next year.
With that on his mind, Councilor Jim Gourley asked during the meeting whether the city could reduce the decrease in the water rates, but lowering the total base charge and providing a smaller decrease on the commodity charge, the charge for hundred cubic feet of water.
Adams plugged the new numbers into the spreadsheet and calculated an additional $20,000 in revenue.
“That’s that much you’re taking away from future debt,” Adams said. The city has increased water rates the last couple of years by a little more than the spreadsheet model has suggested in anticipation of the upcoming water plant and associated debt.
The proposed increase – the numbers that will be included in the city’s proposed budget – includes the following:
– For water, the base charge decreases from $17.69 to $17.50. The commodity charge decreases from $4.61 per hundred cubic feet of water to $4.50. It will provide approximately $1.52 million in revenues for the water utility.
– The sewer base rate increases by $2.34 to $26.63. The commodity charge increases from $5.60 per hundred cubic feet of water to $5.95. It will provide approximately $1.97 million in revenues for the wastewater utility.
– The overall increase is 1.5 percent for the average customer, who uses 668 cubic feet of water, 4,997 gallons, per month. The base charge includes the first 400 cubic feet for residential accounts.
– For the first time, the city will begin charging a rate on its storm water utility, at a rate of $1 per equivalent dwelling unit. All single-family residences will be charged at one EDU, so residents can expect their utility bill from the city to increase by an additional dollar this year. Commercial and multi-family residential properties will be charged based on actual impervious surfaces.
The storm water rate will provide approximately $50,000 in revenues for the utility.
Adams suggested that the city increase over the course of several years the storm water utility to the $4 level recommended in a study last year.
“This will allow the city to collect funds for the first year and start subsequent-year utility with positive funds while also allowing some work to be funded appropriately throughout the year if necessary,” Adams said.
Water bills for 700 cubic feet of water were a little less than $20 per month in 1996, and sewer bills were approximately $15 per month. In 2000, they increased to a combined total of approximately $40 before rising again in 2004 to a combined total of about $50 per month, with increases following annually through this year. This year, if rates are approved, 700 cubic feet of water and sewer service will cost approximately $75 per month.
The average utility customer, at 668 cubic feet of water usage, pays 1.4 cents per gallon for water and sewer service.