Waitsburg To Consider Rate Hikes

WAITSBURG - A recent water and sewer rate study shows the City if Waitsburg needs to increase its rates to break even.

The Waitsburg City Council last Wednesday heard a presentation from Alan Schroeder, the vice president of the Walla Walla company Anderson Perry & Associates.

Schroeder said he was hired by the city to see if the cost of utilities is keeping up with the cost of service. He found both rates needed to be increased so the city stops losing money.

For water, Schroeder said the city is currently charging $27.10 a month, with an addition 59 cents per 100 cubic feet for those who use more water than allotted.

Schroeder said the city has few who use more water than allotted and the overage charges are not bringing in as much revenue as the city had hoped. Unless the rates increase, the city will start falling behind, he said, especially because of recent investments on Fourth and Seventh streets.

If the rate was raised to $30.58 a month, the revenue and expenses in the water fund would balance out to $0. If the city is projecting more capital projects and expenses, Schroeder recommended raising the base rate to $31.25 a month.

"This is needed reasonably soon," he said. "You haven't been getting the revenue you'd hoped."

The city could be losing up to $25,000 a year with the current rate, Schroeder added.

City Manager Randy Hinchliffe said how much water is used all depends on the climate. Customers haven't used as much over the past two years because of cooler springs and summers, he said.

As for sewer, the city is still paying on a wastewater treatment plant and line projects. In 2001, the rate was raised to $39 a month and now it is $40.60. Schroeder recommends a $50.33 rate, increased gradually over a year or two.

The water rate of $31.25 and the sewer rate of $50.33 would raise bills to $81.58 a month, a $13.88 increase.

"The combination of the two is not obscene," Schroeder said.

Hinchliffe said if the city did consider raising the rates, there would need to be smaller increases over two years to ease into the changes so it's "not as burdensome."

A public hearing will need to be held on the proposed rate increases. The council will continue discussing the increases in 2012 and possible approval. If the council approves the new rate changes in January, customers could see increases on their February or March 2012 bills.