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City: Set sewer rate up 26%
News · February 03, 2010
Instead of gradual increases that would work up from 28 to 67 percent jumps over five years, the city council now wants to bump up the sewer rate almost 26 percent right away.
The city estimates that the average family of four would see their bill go up by $5 per month.
After some discussion at Monday’s meeting, the council directed city staff to draw up an ordinance that would raise the sewer usage rate from $3.65 per 1,000 gallons to $4.59.
That would put the sewer rate equal to the water rate and bring in about $50,000 more per year. The council expects to vote on the ordinance at its Tuesday, Feb. 16, meeting, and it would need three readings before final approval.
The sewer rate, left unchanged, was expected to bring in an estimated $198,000 in the coming fiscal year. If the increase is passed, that could be as much as $248,000.
“This is higher than we bounced around (at the previous meeting) but this should have been done a year ago,” City Administrator Kyle Soukup said.
At the council’s Jan. 19 meeting, members discussed three scenarios that increased the sewer rate in smaller increments that built up to between 28 and 67 percent increases over five years.
The sewer rate increase was originally proposed to cover shortfalls in the sewer budget, which last year amounted to about $67,000.
Public Works Director Brian Brennan said Monday he has balanced the proposed sewer budget, so all new revenues can be set aside for large projects. Soukup said the funds could build up to save for a possible new $5.5 million wastewater treatment plant.
Council member David Johnson suggested charging higher rates for commercial and industrial users to lessen the burden on residential users.
Mayor Don Kessler disagreed.
“I think all should be raised the same, David,” he said.
Council member Robert Sexton said he could understand a differentiated increase if one business used machines that consumed massive amounts of water.
“I don’t know if I really agree,” he said. “Now we’re picking on industrial and (commercial) businesses. They’re trying to make a living and we’re turning around and charging them more.”
City Clerk Deb Fiderlein noted that small businesses, grouped together, use more water than industrial.
Johnson noted that individual small businesses, like Jack & Jill, don’t use as much water as, say, Procter & Gamble.
Soukup produced figures showing that Crestview Nursing and Rehab Center is the city’s largest single water customer, going through 2.5 million gallons a year.
Some of the city’s largest water customers (not including schools) measured in gallons of water used per year:
1. Crestview: 2.5 million
2. Procter & Gamble: 2.3 million
3. Plastic Products: 2.2 million
4. Presidential Inn: 860,000
5. Kum & Go: 543,000
6. Herb & Lou’s: 410,000
7. McDonald’s: 408,000
8. Tidewater: 235,000
Fiderlein said that she “(doesn’t) see a significant revenue” in higher sewer rates for industrial customers, which make up 9 percent of all water and sewer use, or commercial customers, which make up 13 percent.
Johnson reiterated his statement from the Jan. 19 meeting, saying that businesses use water for profit, where residents use it for survival.
Sexton said that “enough’s enough” because small businesses “are asked to do so many things.”
“During Hometown Days, people come in to use the restroom and they get no return on that,” he said.
Main Street West Branch Program Director Rod Ness asked how the city would assess the sewer rate on some of West Branch’s home-based businesses, like a hair salon, crafts and Internet sales.
Johnson said that those people would be using that water “whether they had a business or not.”
Council members discussed charging higher rates when water usage reaches certain thresholds. Soukup said his family of four uses about 4,000 gallons per month; Sexton said his family of seven uses about 6,500 to 7,000 gallons per month.
Fiderlein strongly suggested the council hold a public input meeting if they considered that option.
“Or it would be like sneaking something through,” she said.
Council member Dan O’Neil suggested following Soukup’s recommendation to put the sewer rate at $4.59 to match the water rate, which seemed to garner the most support.
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