Water and Wastewater Rate Increase

Water and Wastewater Rate Increases

 

In 2016 the city had a rate study on the charges for water and wastewater.  It was determined then that what the customers were being charged was not adequate for what the expenditures for those two departments were.  An in house rate study has been conducted since that year with the same results.  For years the electrical department revenue helped with those departments shortage in revenue which did result in a 1.5 cent increase last year in the electrical rate.  Because customers did pay high electrical bills because of the increased cost for the purchase of power the electrical rates were examined closely during the budget process for FY 2024.  In an attempt to decrease the electrical cost Council did increase the minimum for water from $24.19 which included up to 2,000 gallons to $54.21 which includes up to 5,000 gallons.  The 5,000 is the average usage for customers in the city.  The minimum covers the estimated expenses for the water department without being dependent on what a customer may use. Any usage over the 5,000 gallons is charged an additional $2.50 per 1,000 gallons.  Wastewater increased to $44.00 for an average water usage  of up to 5,000 gallons from $$28.69 for an included 1,000 gallon average of water usage.

Even if a customer uses less than the included 5,000 gallons the cost to produce the water is the same which includes the employees; supplies for repairs; and chemicals along with those departments paying one-fourth each of the expenditures for the administration departments.

The decision to make this increase had been one that council had prolonged doing for as long as possible because they were thinking of the customers.  With increase in expenses that has been experienced by all since 2020 they could no longer avoid the increase.  We are confident that such an extreme increase will not be necessary in the future since the rates are aligned with the departments they support and should not have to increase any more than 5% if that much.