Sean C. Morgan
Beginning in July, residential water rates will remain at the same level as they have for the past two years, but sewer rates will increase substantially.
The rates still must be approved by the City Council prior to taking effect, but they will be used to set the utilities budgets for the 2012-13 fiscal year during spring budget sessions. The council met with Public Works Director Mike Adams on April 3 in a work session and reached a consensus to hold the line on water rates.
The city will be able to forgo a water rate increase by spending down its contingency funds in the next fiscal year, Adams said. The city does not have the same option for sewer rates because even under the proposed rate there will be no contingency in the wastewater budget next fiscal year.
The council’s consensus will hold the water base rate at $17.90 and the cost per 100 cubic feet at $5.95. Upon council approval in a regular meeting, the base rate for sewer service will increase from $26.89 to $28, a 4.1-percent increase, and the cost per 100 cubic feet will increase from $5.82 to $7.66, a 31.6-percent increase.
The 95-cent inflow and infiltration charge, which has been used to help pay for sewer repairs, will be removed from sewer bills in an effort to keep the rate increase down, creating a net increase of 16 cents, to $45.90, or 0.34 percent, on the combined water and sewer base charges for utilities. That figure is also the minimum bill and applies to most residents using 400 cubic feet or less.
This means the bulk of the increase in water and sewer bills will be the cost per 100 cubic feet for sewer service.
At 600 cubic feet, which is near the current average use by Sweet Home residents, water and sewer utilities will cost $73.12 per month, an increase of 5.54 percent from $69.28.
At 700 cubic feet, the old average, bills will increase by 7.01 percent from $81.05 to $86.73 per month.
For homes using 1,000 cubic feet, bills will increase from $116.36 to $127.56, or 9.63 percent. At 1,500 cubic feet, bills increase from $175.21 to $195.61, 11.64 percent.
When calculating bills each month, the city rounds down to the nearest 100 cubic feet used. The city also does not charge for the first 400 cubic feet, which is reflected in a higher price per 100 cubic feet. The percentage increase residential customers will pay varies because the first 400 cubic feet is not billed, while the cost of that water production is rolled into the price per 100 cubic feet.
To calculate your bill, subtract 400 cubic feet from the total used to find the number of billable 100 cubic feet. Add the base rates, $17.90 and $28. Multiply the number of billable 100 cubic feet by $5.95 for water and $7.66 for sewer. Combine the two numbers.
For example, at 800 cubic feet, subtract 400, leaving four billable 100 cubic feet. Add the two base rates together to reach $45.90. Multiply four by $5.95 for water and $7.66 for sewer to find totals of $23.80 for water and $30.64 for sewer. Combine the two to find $54.44 in charges per 100 cubic feet. Combine $54.44 with the base charge of $45.90 to determine your bill, which would be $100.34 under the proposed rates.
On top of the sewer and water bill, the city adds a $1 charge for most customers for storm water drainage.
The rates are calculated based on the actual cost of providing water and sewer services, Adams said.
The proposed rate structure doesn’t account for upcoming expenditures the city will have to make in the sewer system.
The city faces a wastewater treatment plant expansion to meet requirements imposed by the Ore-gon Department of Environmental Quality that prohibit any bypassing of untreated wastewater into the South Santiam River, something that can occur due to inflow and infiltration during heavy rain events. Inflow and infiltration is storm water that leaks into and overloads the sewer system through deteriorated pipes and cross connections with storm drains.
Adams also proposed two higher rate options, which at 700 cubic feet, for example, would have increased the total water and sewer bill by 9.21 percent. At 600, the highest proposed rates would have increased the bill by 7.69 percent.
The council rejected any rate increase on the water side.
“I’m looking at any way to try to keep the rates down,” said Mayor Craig Fentiman, noting that the economic conditions don’t make him eager to approve increases.
The city can achieve this with the water rate by decreasing the water service contingency by $164,000, Adams said. On the sewer side, “the carryover we’ve got now is being utilized. We just don’t have enough carryover to forgo an increase.”
Councilor Scott McKee Jr. said he wants customers to know the city is trying to work with them on rates, and he doesn’t think it’s a good time to “stick it to them.”
He is a student and his wife has not been employed for two years, McKee said, adding that that is probably influencing his thoughts, but he knows he’s not the only one in that situation in the Sweet Home community.
“The situation with the economy is weighing heavily on me,” McKee said. He feels “passionately” about keeping the water rate the same, but doesn’t want to cut the utilities short either, he said.
The councilors agreed unanimously to hold the line on the water rate while increasing the sewer rate.
Present at the meeting were Marybeth Angulo, Mike Hall, McKee and Fentiman. Absent were Jim Gourley, Ron Rodgers and Greg Mahler.