HIGHFILL — The city council passed on it’s third and final reading an ordinance raising water rates in the Highfill water system’s service area.
The ordinance will automatically raise water rates by 5 percent each year unless the council votes to stay the rate increase for a particular year. The rate increase will begin with this year's Nov. 1 bill, with the automatically scheduled annual increases continuing with the first subsequent increase on Jan 1, 2014.
The reasons for the increase cited in the proposed ordinance include increased cost to the city to buy water from the Benton/Washington Regional Public Water Authority and increased costs and expenses to maintain and operate the water system.
The rate increase includes a service charge based on the water customer’s meter size, a usage charge based on the amount of water used, 30 cents per month per service connection to recover the state Public Water System Service fee, and an assessed $1.50 per metered customer per month as established by the Benton/ Washington Regional Public Water Authority.
Monthly meter service charges range from $25 for a 5/8-inch meter to $725 for an 8-inch meter. Residential water rates were listed at $4.78 per 1,000 gallons or part thereof; commercial rates were listed as $3.15 per thousand; and industrial/ wholesale rates at $2.63 per 1,000.
The vote followed concerns voiced by councilman Toby Lester and councilwoman Michelle Reiff.
"I have problems with the 5 percent increase every year," Lester said. "That will mean the rates will double every 14 years," he added.
Water supervisor James Wiand explained the need for the increase, saying the city, with an anticipated increase from the Benton/ Washington Regional Public Water Authority, would be paying more for water than charging customers. He said the city also needed to save money for repairs and maintenance on the system. He said the first year's increase wouldn't cover costs but the second would.
City attorney Steve Millerexplained that the ordinance allowed council members to review and stay the increase each year, but that the increase would occur if the council did nothing.
"Is this the best way to (increase rates and cover costs)?" asked Reiff.
Wiand explained that this way allowed water customers - especially large users such as the regional airport - to plan ahead and budget for the increase.
Lester asked that the matter of the increase be added to the council's agenda each year - likely when the water department budget is approved - so that the incremental rate hikes don't just happen each year if they are not needed.
Ryan Evans, Michelle Reiff and Paula Pautsky voted in favor of the ordinance. Toby Lester opposed the measure. Councilwoman Sandy Evans was absent and has not been in attendance at meetings in recent months.
In other business, the council denied an appeal of the planning commission's decision to deny a request to rezone property located at 14378 W. Arkansas Highway 12 from planned unit development (PUD) to general commercial (C-2). No one was in attendance to speak in favor of the appeal, though written materials were received from Edward Nicklaus.
Chuck Eggebrecht was introduced to the council as the city's new police chief. Eggebrecht said the police station would be moved back to its former location, just east of city hall, to give the public more access to meet with officers.
The council asked the mayor to come back to the council with price comparisons, including service contract and the possibility of a trade allowance, on the color copier the city has been using to print water bills and other materials. Mayor Stacy Digby said the original asking price for the machine the city has on loan was $4,500 and within the city's budget.
Also discussed at the meeting was a sewer project to extend sewer lines across Highway 12 and south on Main Street to make service available to the new church building under construction, and revisiting city employment policy and establishing a salary schedule which included vacation time and limits on accrual.
News, Pages 3 on 09/19/2012