Water rate bump given green light pending PSC approval
By Dave Fidlin
Correspondent
Whitewater residents connected to the city’s sewer and water utilities can expect rate hikes in the years ahead, following a series of recent decisions by officials.
The Common Council voted April 15 in favor of increasing rates for both services, although water rates will need to go before the Public Service Commission before the proposal is minted.
The sewer rate increase comes on the heels of a rate study that was conducted a year ago by a firm known as Trilogy. Company representatives at the time said a rate increase was not needed in 2014, but did recommend implementing raises from 2015 to 2017.
However, Finance Director Doug Saubert and Wastewater Superintendent Tim Reel said a rate increase this year might be prudent in light of future capital expenses that have been planned in the future.
“It is hoped that by increasing sewer rates by 3 percent in 2014, this will reduce the need for a much higher rate increase in the future,” Saubert said.
By going with a 3-percent increase now, the sewer utility can increase rates by 4 percent annually through 2017.
Saubert said the goal is to integrate the increases gradually, over time, rather all at once where customers could feel the pinch of a sizable hike.
The council’s vote in favor of the recommended plan means utility customer’s bills will increase after meters are read June 24.
Saubert said the utility plans to increase revenue by $31,285 during the second half of 2014. Saubert and Reel have asserted the plans in motion should not hit customers’ pocket books too hard because of the gradual approach being adopted.
An average customer’s monthly bill should rise by 96 cents once the rate increase goes into effect. This would result in a monthly bill of $33.21, rather than $32.25.
Proceeds from the sewer utility increases will fund oft-discussed improvements to the wastewater facility, which could hover around $10.4 million to complete. Initial projections for the improvements had at one time been in the ballpark of $7 million, which is part of the reason for the rate hike this year.
In the case of water rates, the council gave city staff the green light to go before the Public Service Commission (PSC) and seek a 3-percent rate increase.
Since the city has been billing customers at rates below those previously approved by the PSC, Saubert said he is hopeful the city will not have to go through an extensive, formal rate case application process.
Instead, the city is looking to file what is known as a simplified rate case, which should help expedite the process.
The city has not increased water rates since 2011. Assuming all goes as planned, the water utility also should begin assessing a higher rate after June 24.
Saubert said the water utility would add a cash infusion of $11,700 into its budget for the duration of the year, and the average residential customer’s monthly water bill would increase by 64 cents, based on the plan being presented to the PSC.
