Committee considers 15-percent increase to sewer rates over 3 years
Lead Summary
By
Brandy Chandler-brandychandler@gmail.com
The utilities committee of the Hillsboro City Council is considering a 15-percent increase to sewer rates over a three-year period. The proposed increases come after a 2008 freezing of increases to sewer rates that had been recommended by the Rural Community Assistance Partnership (RCAP) to help cover a nearly $20 million mandated upgrade to the city's wastewater treatment plant. Utilities committee chairperson Dave Shoemaker told the committee Monday that had the city followed RCAP's recommendations the rates would have been increased by 58.71 percent since 2008.
The committee met Monday prior to the regular meeting of the Hillsboro City Council. Shoemaker reported that he had recently been provided with numbers from RCAP on sewer rates.
"RCAP is recommending we increase rates 5 percent in 2011, 5 percent in 2012 and 5 percent in 2013," Shoemaker said.
In March 2010, council voted to indefinitely freeze a pending 28-percent increase to the sewer rates. When RCAP helped the city develop a 10-year forecast on sewer rates increases in 2008, the city had not received substantial grants toward the $20 million-constuction at the wastewater treatment plant. Shoemaker said that since then, the city has secured approximately $10 million in grants, which allowed the city to freeze the rates. Construction began in 2010, and according to Hillsboro Safety and Service Director Ralph Holt, is scheduled to be completed before the end of 2011.
"I appreciate paying 5 percent instead of 58 percent," Shoemaker said.
In October, Hillsboro Mayor Dick Zink reported to council that the water revenue is down $232,147 from last year's year-to-date funds, and the sewer revenue is down $282,265. The city has contacted Waye Cannon of the Rural Community Assistance Partnership (RCAP), which had helped Hillsboro in coming up with a system of incremental raises in the utility rates so that capital improvements could be made to the water and sewer systems. Zink said the decrease is "primarily due to construction being down this year and approximately 45 less customers from last year."
In October 2010, water rates were increased by 5 percent. Shoemaker said that while water and sewer rates are separate, in when rates
Shoemaker said Monday that the committee will do its "due diligence" on the proposed increases. They will meet June 22 at 5:30 p.m. to discuss the increases and allow Hillsboro residents to have an opportunity to expressed their concerns on the matter. It is anticipated that a recommendation will be mad to council in July. Shoemaker said that there are a few options in which to approach passage of the legislation. Council could let it have three readings, and the increase would become effective 30 days after the legislation's passage (a four-month long process). Zink said that means the city would not see the increase in 2011, and would not be passed before September, when water rates are scheduled to increase. Shoemaker said that though the rates are separate, sewer effects the amount of water used, so the increases should happen at the same time. Council could also vote to waive the three-reading rule and pass the legislation as an emergency.
"The committee will meet and discuss what is best," Shoemaker said.
Shoemaker said that he had consulted Hillsboro Auditor Gary Lewis on the figures from RCAP, and that Lewis agreed that the increases area justified.
"He agrees the increase is necessary," Shoemaker said. "In 2013 we have to start making payments on the construction project. But we won't wait three years to look at this again. We will revisit it every year, as long as I'm here."
Lewis told the committee," Given the parameters that were stated, a 5-percent increase is in line."
Shoemaker said the minimum sewer rate is currently $24.21 a month. The increase will equal $1.21, making the rate $25.42.
Shoemaker said that previous city leadership collected enough funds through water and sewer bills to pay off the loans of the construction of the wastewater treatment plant, but not enough for maintenance and loans. That has resulted in deteriorating sewer and water lines throughout the city.
Zink said that currently the city is $1,600 ahead of collections on sewer payments, which is "not a good chunk."
"It's not enough to fall back on," Shoemaker said. "It doesn't go very far when you're constructing a building."
Hillsboro City Council member Rod Daniels asked how the proposed increases would impact collections.
"It won't," Zink said. "At least it didn't last time."
In 2008, the utilities committee worked for several months with the Rural Community Assistance Partnership (RCAP) in developing incremental increases to the water and sewer to build up those funds for capital improvements, and includes the following increases:
Ordinance 2008-08, "to adjust the rates charged for water usage, amends the current water rate schedule for "the first 133 cubic feet per month according to the following schedule ... for water usage of the previous month, in each of the following years: year 2008, $7.18; year 2009, $7.68; year 2010, $8.07; year 2011, $8.47; year 2012, $8.77; year 2013, $9.08; year 2014, $9.39; year 2015, $9.72; year 2016, $10.06, and the same rate thereafter unless amended by council."
Ordinance 2008-04: "regarding the minimum monthly sanitary sewer charge will be from 0 cubic feet to 133 cubic feet of water usage, regardless of the amount of water metered, and shall be according to the following schedule ... billing, for sewer usage the previous month, in each of the following years: year 2008, $24.21; year 2009, $31.11; year 2010, $37.65; year 2011, $43.30; year 2012, $45.46; year 2013, $47.73; 2014, $50.12; year 2015, $51.87; year 2016, $53.69.
The utilities committee of the Hillsboro City Council is considering a 15-percent increase to sewer rates over a three-year period. The proposed increases come after a 2008 freezing of increases to sewer rates that had been recommended by the Rural Community Assistance Partnership (RCAP) to help cover a nearly $20 million mandated upgrade to the city's wastewater treatment plant. Utilities committee chairperson Dave Shoemaker told the committee Monday that had the city followed RCAP's recommendations the rates would have been increased by 58.71 percent since 2008.
The committee met Monday prior to the regular meeting of the Hillsboro City Council. Shoemaker reported that he had recently been provided with numbers from RCAP on sewer rates.
"RCAP is recommending we increase rates 5 percent in 2011, 5 percent in 2012 and 5 percent in 2013," Shoemaker said.
In March 2010, council voted to indefinitely freeze a pending 28-percent increase to the sewer rates. When RCAP helped the city develop a 10-year forecast on sewer rates increases in 2008, the city had not received substantial grants toward the $20 million-constuction at the wastewater treatment plant. Shoemaker said that since then, the city has secured approximately $10 million in grants, which allowed the city to freeze the rates. Construction began in 2010, and according to Hillsboro Safety and Service Director Ralph Holt, is scheduled to be completed before the end of 2011.
"I appreciate paying 5 percent instead of 58 percent," Shoemaker said.
In October, Hillsboro Mayor Dick Zink reported to council that the water revenue is down $232,147 from last year's year-to-date funds, and the sewer revenue is down $282,265. The city has contacted Waye Cannon of the Rural Community Assistance Partnership (RCAP), which had helped Hillsboro in coming up with a system of incremental raises in the utility rates so that capital improvements could be made to the water and sewer systems. Zink said the decrease is "primarily due to construction being down this year and approximately 45 less customers from last year."
In October 2010, water rates were increased by 5 percent.
Shoemaker said Monday that the committee will do its "due diligence" on the proposed increases. They will meet June 22 at 5:30 p.m. to discuss the increases and allow Hillsboro residents to have an opportunity to expressed their concerns on the matter. It is anticipated that a recommendation will be mad to council in July. Shoemaker said that there are a few options in which to approach passage of the legislation. Council could let it have three readings, and the increase would become effective 30 days after the legislation's passage (a four-month-long process). Zink said that means the city would not see the increase in 2011, and would not be passed before September, when water rates are scheduled to increase. Shoemaker said that though the rates are separate, sewer affects the amount of water used, so the increases should happen at the same time. Council could also vote to waive the three-reading rule and pass the legislation as an emergency.
"The committee will meet and discuss what is best," Shoemaker said.
Shoemaker said that he had consulted Hillsboro Auditor Gary Lewis on the figures from RCAP, and that Lewis agreed that the increases are justified.
"He agrees the increase is necessary," Shoemaker said. "In 2013, we have to start making payments on the construction project. But we won't wait three years to look at this again. We will revisit it every year, as long as I'm here."
Lewis told the committee," Given the parameters that were stated, a 5-percent increase is in line."
Shoemaker said the minimum sewer rate is currently $24.21 a month. The increase will equal $1.21, making the rate $25.42.
Shoemaker said that previous city leadership collected enough funds through water and sewer bills to pay off the loans of the construction of the wastewater treatment plant, but not enough for maintenance and loans. That has resulted in deteriorating sewer and water lines throughout the city.
Zink said that currently the city is $1,600 ahead of collections on sewer payments, which is "not a good chunk."
"It's not enough to fall back on," Shoemaker said. "It doesn't go very far when you're constructing a building."
Hillsboro City Council member Rod Daniels asked how the proposed increases would impact collections.
"It won't," Zink said. "At least, it didn't last time."
In 2008, the utilities committee worked for several months with the Rural Community Assistance Partnership (RCAP) in developing incremental increases to the water and sewer to build up those funds for capital improvements, and includes the following increases:
Ordinance 2008-08, "to adjust the rates charged for water usage, amends the current water rate schedule for "the first 133 cubic feet per month according to the following schedule ... for water usage of the previous month, in each of the following years: year 2008, $7.18; year 2009, $7.68; year 2010, $8.07; year 2011, $8.47; year 2012, $8.77; year 2013, $9.08; year 2014, $9.39; year 2015, $9.72; year 2016, $10.06, and the same rate thereafter unless amended by council."
Ordinance 2008-04: "regarding the minimum monthly sanitary sewer charge will be from 0 cubic feet to 133 cubic feet of water usage, regardless of the amount of water metered, and shall be according to the following schedule ... billing, for sewer usage the previous month, in each of the following years: year 2008, $24.21; year 2009, $31.11; year 2010, $37.65; year 2011, $43.30; year 2012, $45.46; year 2013, $47.73; 2014, $50.12; year 2015, $51.87; year 2016, $53.69.
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