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| Council Continues Water Rate Discussion |
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| News - Osawatomie | |||
| Written by Travis Perry | |||
| Wednesday, 03 March 2010 09:00 | |||
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City officials continued exploring alternatives Thursday evening to raising city water rates by a proposed 8 percent. The funding issue was brought to the forefront by a low reserve fund balance for water utility-related expenses. Osawatomie City Manager Bret Glendening told city council members that ideally, the city should maintain a reserve balance equal to 15 percent of total water-utility expenditures; consequently, he said, it could take as long as five years at a higher percentage rate for the city to reach a goal of $100,000 for the water fund. Councilman Mike Moon cautioned other officials against raising rates prematurely before all options have been explored. “You don’t ever go backward on rates; that doesn’t happen very often,” Moon said. Glendening responded by noting that he was not advocating a rate increase, but rather simply letting officials know what would be needed to achieve the fiscal goal. However, he also said that he plans to double-check the figures at hand after noting that something seemed slightly off to him in regards to the formula used to calculate the necessary increases. The primary cause for concern about the low water fund balance is the need for repairs and infrastructure upgrades, officials say. As the city deals with a network of aging main water lines and increasingly inefficient equipment, a proper reserve balance is a necessity, council members noted. On a positive note, Glendening told council members that all four pumps at the water treatment plant are operational — something he said hasn’t been the case for several years. After some brief number crunching, council members determined that should a rate increase be implemented, the average household should only see its bill increase by a few dollars per month. “You’re talking pennies per gallon,” Glendening said. Not all council members opposed an increase; it saw some support as long as it would ensure that the city could continue to make necessary updates to facilities and infrastructure. “Nobody wants to see price increases on anything, but if our infrastructure is looking to grow, are we going to have the capability to do so?” Councilman Larry Ratley asked. While the issue is far from resolved, Mayor Phil Dudley expressed displeasure at the thought of an increase. “An 8 percent water increase would be hard to swallow,” he said.
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