Serving the Big Horn Basin for over 100 years
Serving the Big Horn Basin for over 100 years
WORLAND — The water rate increase proposed by the Worland City Council will go into effect Dec. 1 if passed tonight on third and final reading. The rates will increase by 15 percent, with the council initially discussing increases from 10 percent up to 15 percent. The rate includes an increase on the base rate and the consumption rate.
WORLAND — The water rate increase proposed by the Worland City Council will go into effect Dec. 1 if passed tonight on third and final reading.
The rates will increase by 15 percent, with the council initially discussing increases from 10 percent up to 15 percent. The rate includes an increase on the base rate and the consumption rate.
Ordinance No. 844 setting the new rate was approved on first reading Oct. 3 and on second reading Oct. 17.
On first reading some council members voiced support for 10 percent and 14 percent, while others preferred the 15 percent in hopes that another increase would not be necessary for several years. The council approved the ordinance on first reading on a 6-3 vote with Dennis Koch, Mandy Horath and Keith Gentzler opposed. The ordinance passed second reading on a 6-4 vote with Koch, Horath, Gentzler and Christy Schneider opposed. Voting in favor were Michele Rideout, Loresa Brinkerhoff, Mayor Jim Gill, Gary Gerber, Lisa Fernandez and Mike Neufer.
BACKGROUND
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 currently 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 have 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.
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.
During Tuesday’s meeting, City Attorney Kent Richins reiterated Seckman’s point on complying with state statute. “Essentially the law requires that we have rates capable of paying for all the expenses associated with the water system,” he said. “This is the only category of city utilities that we have this issue.”