Water rate increase comes before council

WORLAND — The Worland City Council will discuss the water rate increase ordinance at tonight’s regular meeting.

Ordinance 844 if passed on three readings will increase the water rates for city water users by 10 percent, 12 percent, 14 percent or 15 percent. Four options will be presented to the council on first reading.

At the Sept. 19 council meeting, auditor James Seckman, certified public accountant, recommended a water rate increase. At the September meeting he said, “One of the things that I want to update you on is that state statute actually requires that for a municipality that has a population over 5,000 people that it shows an operating income in each one of its enterprise funds (water, wastewater and sanitation).” He noted that city has had an operating loss in the water fund and has been operating with a loss over the past few years.

Operating expenses exceed revenues by $309,000. “One of the things that we’d like to do over the next two to three years is that we’d like to sure up that gap,” Seckman said.

He also noted that while revenues are at $1,756,000, they are down $17,000 from the previous year.

Seckman and City Treasurer Tracy Glanz recommended increases to the base and consumption rate. Current consumption rate is $8.62 for residential customers. Commercial and industrial customers hav a varying base rate depending on average useage.

Consumption rate begins at $3.49 for the first 8,000 gallons for commercial and $2.83 for the first 4,000 gallons for residential.

Under the 10 percent proposal, the base rate would increase to $9.48 with consumption at $3.85 for commercial and $3.11 for residential. At the 15 percent rate increase, residential consumers would see the base rate increase to $9.91 and the consumption rate at $3.25 for the first 4,000 gallons. Consumption rate for commercial consumers would be $4.01 for the first 8,000 gallons.

Glanz said at the September meeting that a typical resident per month in fall and winter would use about 4,000 gallons so the overall water cost would go from $19.94 per month to $22.91 or an increase of $2.97 under the 15 percent increase.

In a spread sheet for the council, Glanz noted that summer usage is higher so a resident using 66,000 gallons under a 15 percent rate would see an increase of $16.85 per month.

Glanz noted that the city has not had a water rate increase since 2009.

If approved on three readings, rates would go into effect on Dec. 1.

Also on the council’s agenda tonight is citizen’s comments from Rachell Colvin of The Warehouse and Jane O’Connor and Kay Fritzler on city hall landscaping.