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Water rates?
At the August, 2008 meeting, Brown & Caldwell provided “Proposed January 2009″ residential water rates, showing reductions ranging from 6 to 18 percent.
City Council did not change water rates, in 2009.
In November, council did approve a new water rate study by Brown & Caldwell, which would factor in the $6 million in water system funding (half that does not have to be paid back, half at 1 percent interest). Originally, the results of the new water rate study (factoring in the $3 million grant and $3 million at 1 percent interest loan) were to be delivered to City Council by the end of 2009, based on water superintendent Miles Beach’s presentation at the beginning of November. Beach later said via email that “The contract for the rate update was changed from 30 to 45 working days for completion, in consideration of the holidays. With that said, we should have the update by mid January with a formal report to council in February.”
A “Water System Capital Improvement Plan” that spells out the costs of the $16 million drinking water upgrade ($7 million 2010-2012, $3.5 million 2013-2016, $3 million 2017-2020, $3 million 2024-2025) is on the agenda, for Monday night’s council meeting.
The new water rate study is not on the agenda.
I figured you were giving us the net cost of the project after the grant. I am sure we can find another 3 million to spend on. Oh, the sewer system will need some EPA solid waste removal work soon. How about a back up line to Hogan’s Corner for water from the county? That should cost 3 million. I am sure we have some costs that the LID for the Oyhut area will not cover. I thought there was talk about replacing the line going down the Oyhut Creek.
CAC: don’t forget to subtract the “grant” money of $3 million. But then when you add in interest for the rest . . .
Oh Tom, It is only $16,000,000 divided by only the lots with water and not the lots that do not have water services. That is only $4571 per user if we have 3500 utility customers. Think, over 15 years that is only $304.76 a year. That is only 83 cents per day for good pressure in the fire hydrant system and water that still has iron bacteria.
If the city would pay back the money it owes the utility from loans and refund what it owes the utility from cost allocation, there would not have been a loan necessary to build the treatment plant. It could’ve been paid for with cash on hand.
Also, if we would have gone with county water, there would have been no need for the treatment plant or the planned future new wells in the first place.
All the city is waiting for is to drive the utility so far into the hole with loans, that there will never be a rate decrease, and don’t be surprised if all this useless spending and borrowing results in an increase in water rates.