Auroraadvocate.com - Water, sewer rate increases being studied

by Ken Lahmers

Editor

Aurora -- City officials are looking at increasing water and sewer rates for residents, but are not sure how much of a boost to recommend to legislators.

At the service-utilities-safety committee's Feb. 5 meeting, Finance Director Bob Paul said the water and sewer funds have been in the red in recent years, requiring two transfers of $200,000 each from capital funds in 2007.

Paul has recommended a water and sewer increase of 10 percent in both 2008 and 2009, with 5 percent added in each of the following three years.

However, he noted Mayor Lynn McGill and himself are still studying how much of a boost to recommend, and the annual increases could end up being smaller.

"The last water rate increase to residents [6 percent] came in 2002," Paul said. "Since then, Portage County has charged the city 11 percent more annually for water."

He added there hasn't been a sewer rate increase "for at least 12 years," noting sewer connection fees from developers have kept the sewer fund solvent.

"We charge a significant amount for sewer connections, but when building slows and eventually stops, we won't be able to collect those fees," he said.

"OUR SEWER rates have been quite a bit lower than many surrounding communities, but when building stops our fees probably will even out with the other communities."

According to figures provided by McGill, residents pay a quarterly minimum of $25.79 for water and $26.75 for sewer service. The quarterly rates per 1,000 cubic feet are $35.44 for water and $33.14 for sewer.

He said an average household pays $90 for water and $58 for sewer per quarter, or about $592 total per year.

Even with Paul's 10-10-5-5-5 percent increase plan, the water and sewer funds revenue would not exceed expenditures until fiscal year 2012.

Paul said if legislators approve the increases, the rates could be adjusted annually if the city experiences any significant deviations.

In 2007, the city received about $2.5 million in the water fund and $1.49 million in the sewer fund. It spent about $2.7 million and $1.63 million, respectively.

If Paul's percentage of increase proposal is adopted, water revenue is expected to reach $3.4 million and sewer revenue $2.2 million by 2012, while expenditures would be slightly lower than both.

"We just want to get out of this deficit situation and not have to supplement the water and sewer funds with transfers from capital improvements," Paul said.

E-mail: klahmers@recordpub.com

Phone: 330-688-0088 ext. 3155