Water, sewer rate increase would fund system improvements
Marthasville aldermen to vote on issue Aug. 12
"If you look at where we are compared to some of the surrounding communities, we have the lowest water and sewer rates of a municipality within Warren County," said Marthasville Mayor Dale Verges.
The board tentatively agreed on an increase, but is waiting for City Attorney Chris Graville to review it before releasing the specific amount, Verges said.The board likely will pass an ordinance detailing the rates during the August meeting, Verges said.
The current sewer rate is a base fee of $13 for the first 1,000 gallons a household uses. For each additional 1,000 gallons used after that the city charges 50 cents.
Verges said the proposed sewer increase would not be as large as the increase implemented three to four years ago.
The current water rate is $6 for the first 1,000 gallons used. The cost then decreases on a sliding scale with the next 4,000 gallons used costing $2/1,000 gallons and on down to $1.50/1,000 gallons.
Verges said the water rate has not increased in at least 15 years.
"We're not doing ourselves any favors by keeping the rates so low," he said.
The average homeowner's water and sewer bill is about $30 a month, with a usage of about 5,000 gallons, Verges said.
A rate increase would help pay for future capital improvements to the city's water and sewer systems, including adding a water tower and making improvements to the lagoon, Verges said.
The city budgeted $80,000 for water receipt sales in the 2007-2008 fiscal year, but only collected $69,891, according to Verges, which created a shortfall that forced the city to dip into its reserve fund.
"We're not losing money, but we're not able to put money aside for the growth that's needed in both systems," he said.
Increasing rates also would make it easier for the city to receive federal and state grants or low-interest loans, Verges said.
"Our rates have to be in line with everybody else before the government will consider giving us a grant," he said.
Marthasville currently has two water towers and a stand pipe. City officials hope to build an additional 250,000-gallon water tank to improve services to city residents, Verges said.
The project one year ago was estimated to cost $600,000. To include a deep well, the price increases to $1 million.
Verge also said that with the price of steel increasing and additional expenses, the project could easily reach $1 million without including the deep well.
