Salem community requests information on rate increase

SALEM - The Salem City Council were unable to answer several questions regarding a proposed water rate increase that were asked during the first reading of the increase ordinance Tuesday evening.

During the regular council meeting, resident John Wagner asked if the proposed 3 percent increase on water usage would be enough to offset a $220,000 debt on the city's water service. Wagner said he had asked during the November meeting if there was a projected time that the revenue from the increase would pay off the city's debt and how long it would take until the loan was repaid.

'If everything stays the same you should be able to climb out of that hole faster,” Wagner said. 'When is that projected climb-out?”

Several people in the audience said they had asked questions when the issue was first discussed in November and that those questions had not been answered.

During Tuesday's meeting, when the issue was raised, Mayor Dan Patterson said simply that it was the same thing the council had discussed at the previous meeting. The council had explored two options at the previous meeting, which had 3 percent and 5 percent rate increases. The council approved the first reading of the ordinance to give a 3 percent increase during Tuesday's meeting with little discussion.

The increase on the rate would change water prices from the base rate of $20 per 3,000 gallons to $20.75 beginning July 1, 2020. City clerk Haylee Stecker said the city's water system is currently operating at a loss and the increase would make up the difference.

'Are there going to be answers to the questions we asked last month?” Wagner asked the council. 'You said you would have the information this month to talk about it and now you are doing a thousand yard-stare.”

The question was asked how the council planned to notify users of the rate increase once it is passed. The council members replied it would be on the bills. Stecker said there is a little notice area on the bottom of water bills that she will use to give notification.

'If you are wanting to sell this to me as a citizen of this town, you need to have some answers, guys,” Wagner said.

Patterson said the city no longer produces its own water and contracts with Rathbun Regional Water Association for the city's water. He said the reason for the increase is the water costs more from Rathbun than when the city produced its own water. He also commented there had not been a water increase for city users in a long time. He said the reason for the debt in the water department is the city had originally tried to dig another well, but that had not worked out.

'Just, certain things had occurred and that is why we had to switch over,” he said.