Sean C. Morgan
Of The New Era
The city has decreased its water rates, but increased sewer rates and added a charge for storm water drainage.
The council approved the new rates on June 24 during its regular meeting. The rates, which were reflected in the proposed budget for 2008-09, were effective on July 1.
The rates are designed to recover the full cost of the water and sewer utilities, Public Works Director Mike Adams said.
The water rate did not decrease as much as it might have based on costs. During a work session on April 1, councilors asked Adams to reduce the decrease in the water rate to begin accruing the cash needed to pay for the $8.74 million water treatment plant, which is just recently under construction.
“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.
With the new water treatment plant under construction and sewer projects, Adams said, “future user rate increases can be expected due to anticipated debt due to capital projects.”
The base charge for water, paid by all water users, decreased from $17.69 to $17.50 for residential customers, while the rate per 100 cubic feet decreased from $4.61 to $4.50. The base charge for residential users covers the first 400 cubic feet.
The sewer base charge for all users increases from $24.29 to $26.63. The rate per 100 cubic feet increases from $5.60 to $5.95 for residents with an unchanged charge of 98 cents per sewer connection for inflow and infiltration reduction.
Under the rate increase, the total bill for 700 cubic feet, a little above average, of residential water and sewer use is $76.46, up from $73.59. In addition, the city is now charging $1 per month to most households for storm water drainage.
This represents a total monthly billing increase of 5.26 percent for someone using 700 cubic feet of water, including storm water drainage.
Commercial water rates are now $3.90, and bulk water rates are $3.40. Base charges for water range from $22.40 for 1-inch service lines to $431.60 for 8-inch lines.
The low commercial sewer rate is $5.04 per 100 cubic feet; medium commercial is $6.28; high commercial and industrial is $8.41.
The storm water drainage fee is $1 for properties with up to 3,999 square feet of impervious surface. For properties 4,000 square feet to 6,399 square feet, the rate is $1.25 per month. Between 6,400 and 7,999 square feet, the rate is $2 per month. Between 8,000 and 39,999 square feet, the rate is $2.50; and for 40,000 square feet and larger, the monthly fee is $12.50.
The rates will provide approximately $1.52 million in water revenue, $1.97 million in wastewater revenue and $50,000 in storm water drainage revenue.
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.
Present and voting for the rate increases were Mayor Craig Fentiman and councilors Greg Mahler, Eric Markell, Jim Gourley, Scott McKee Jr. and Rich Rowley. Jim Bean was absent.
In other business, the council:
– Approved a 4 percent raise for employees who are not represented by a union to match the raises scheduled for represented employees in 2008-09.
– Approved a supplemental budget to adjust the 2007-08 budget and approved the 2008-09 budget.