Council mulls over sewer rate hike
Published 12:00 am Tuesday, January 16, 2001
Tuesday, January 16, 2001
Ironton residents haven’t heard the last of a proposed sewer rate increase.
Ironton City Council will take one last look at a proposal to increase future sewer rates during the next regular meeting Jan. 25.
In an effort to ensure the city’s 2001 budget doesn’t fall short on funds, members of council considered what is described as an "almost mandatory" increase in costs for sewer usage, Finance Committee members said last month.
The city currently charges a wastewater usage fee of $3.20 per 1,000 gallons of water usage.
Proposed legislation suggests that usage rates be increased from the current level of $3.20 per 1,000 of water used to $3.70 per 1,000 gallons.
However, the ordinance has been given two readings and is pending a third reading. No action was taken during the first two readings.
Councilman Leo Ulery said it is not uncommon for no action to be take until the third reading is given.
"I think it’s the only fair way to do it," Ulery said. "It gives the public a chance to provide any input they may have, which allows them over a month to comment on the proposed increase."
Wastewater usage has decreased due to loss of industry and an increase in treatment costs, according to the ordinance.
The ordinance suggest that the city is required to maintain an adequate level of funding to secure the quality of services to the citizens.
Wastewater superintendent John Haskins said the city is "required to keep $500,000 in an equipment reserve fund."
"Our plant is aging, it’s a 13-year-old plant and with inflation, it takes a little more to operate it," Haskins said. "The city has been unable to keep the required amount of funding in the reserve fund for some time now. In fact, we are at a critical low. This increase is a much needed increase."
If the proposal to increase sewer rates over a five-year period passes on the Ironton City Council floor, it will call for a 50 cent increase the first year, 25 cent increase the second year and 20 cent, 15 cent and 15 cent, respectively.
The proposal suggests increases to become effective during the Feb. 2001 utility billing, with annual increases on the January billing of each of the following years.
Haskins said he disagrees with the proposal.
"I would prefer council to look at small yearly increases, determine if increases should be in nickel or dime increments and then set increases," he said. "We need the first proposed increase, but I would prefer small increase in the future every year and if we have a year we don’t need it, give it back to the citizens."
He said smaller increases would make it easier for residents to budget in.
Council members have mixed opinions on the matter.
"I’m against it," councilman Bob Lipker said. "The people can’s stand any more rate increase. Why should we penalize the people any more and raise their rates? I just can’t see rate increases right now."
Lipker suggested if a rate increase were to take place, it should be in increments of five cents each year.
"But, I think we’ll be all right if we leave it where it is right now," he said.
Councilman Jesse Roberts said the proposed increases are the best plan city council’s Finance Committee and city finance director Cindy Anderson could formulate.
"I’m not keen on rate increases, but the figures show we will have to do it because of increased costs in chemicals, Workers’ Comp., health care, and the list goes on," Roberts said. "This is not because of mismanagement, it’s not because of big fines or big spending. I’m open to any suggestions others may have."