Sean C. Morgan
Of The New Era
The Sweet Home City Council is considering increasing sewer and water utility rates up to about 13 percent for average customers.
Public Works Director Mike Adams presented options to the council during a work session held on June 12.
The option he recommends will increase the price of 700 cubic feet of water by $8.49 per month, from $65.10 to $73.59. A second option will increase the monthly bill for 700 cubic feet by $5.51. Adams listed a third option, a minimal change in sewer rates, $1 per month plus 45 cents per hundred cubic feet.
The average customer uses approximately 759 cubic feet of water per month, Adams said.
The first option pays the full cost of operating the water and sewer plants and distribution system, Adams said.
The second option pays for most of the cost, excluding only depreciation costs and some debt recovery. The third option includes an increase in sewer rates to meet budgeted beginning fund balances.
The sewer and water rates are composed of two parts, the base charge and the commodity charge.
The base charge is a fixed amount that pays fixed costs, costs that do not change based on the amount of service provided. The base charge also includes the first 400 cubic feet of water each month, something the City Council set up to minimize the impact of rate changes on lower-income users and senior citizens living on fixed incomes.
In the first option, Adams proposes increasing the base charge for water from $17 per month to $17.69 per month. The base charge for sewer would increase from $19 to $24.29.
In the second option, the base charge remains at $17. The base charge for sewer increases from $19 to $22.
In the third option, the base charge for water remains $17, but the base charge for sewer increases from $19 to $20.
After the first 400 cubic feet, the city imposes a commodity charge for water used on residential customers. Commercial and industrial customers do not receive the first 400 cubic feet as part of the base charge.
In the first and second options, Adams proposes increasing the water rate by 43 cents to $4.61 and the sewer rate by 45 cents to $5.60 per 100 cubic feet of use.
In the third option, Adams proposes no increase in the water rate, but he does propose charging 45 cents per 100 cubic feet in the sewer rate.
To calculate a rate, multiply the number of hundred cubic feet by the water and the sewer rates and then add the two base charges. For example, for option one, at 757 cubic feet (5,662 gallons), subtract the first 400 cubic feet, and then multiply 3.59 by the rate per hundred cubic feet, $10.21. Add the base charge, $41.98, to find the monthly bill for average usage. The average user would pay $78.43 per month under the first option.
The total cost amounts to approximately 1.4 cents per gallon, Adams said.
The city has budgeted $1.458 million to operate its water utility for 2007-08 and $1.794 million for wastewater.
The council may make a decision on the rates at its June 26 meeting, with rates taking effect in fiscal 2007-08, which begins on July 1.