Utility rate hikes inch closer to approval

The Washington City Council unanimously passed the second reading of an ordinance that would raise the city?s water and sewer rates. The councilors voted to table the ordinance at its June 1 meeting.

Former City Administrator Dave Plyman had prepared a spreadsheet containing all the utility accounts in the city of Washington. He used it to show how a change in one of the fees, such as the base sewer charge, would affect the amount of revenue generated. The city must generate about $1 million more per year in utilities in order to pay for a new sewer plant and gravity sewer line, which together will cost about $20 million.

Interim City Administrator Dick Schrad said he had looked at Plyman?s spreadsheet. He said it looks as if the city will generate the money it needs through the water and sewer rate hikes to pay off the loan on the new sewer plant. However, he said he wasn?t sure how Plyman ?got to where he did.?

?I have to operate on faith that the numbers he has in there are correct,? said Schrad. ?I think they are good, but I?m not confident I can say to the Iowa Finance Authority that the city can satisfy its debt service requirements.?

Schrad recommended that the council hire a firm to perform a cash flow analysis on the city?s debt repayment program.

?I have never done a cash flow,? said Schrad. ?I have always had experts do this, and the Iowa Finance Authority wants experts to do the cash flow.?

Councilor Fred Stark asked Schrad if the council should scrap its ordinance and begin anew.

?Should we go back to square one?? asked Stark.

Schrad said that wasn?t necessary.

?If you adopt the ordinance, at least you will start collecting revenue,? said Schrad. ?You might have to amend the ordinance in six months or a year.?

The council voted 6-0 to approve the second reading of the ordinance. The ordinance must go through a third reading and a public hearing before it becomes law.

Under the proposed ordinance, everyone?s base sewer fee would at least double. Residences and businesses pay a base fee of $17.50 now while multi-family dwellings pay $12. The ordinance calls for residential and multi-family base fees to be $35.

The base fee would be $35 for businesses that use up to 1,400 cubic feet of water. Businesses that use between 1,400 and 15,000 cubic feet would pay a base charge of $70. The next tier, from 15,000 to 100,000, would pay $140 as a base rate and any business using more than 100,000 cubic feet would pay $280.

The variable sewer rate, based on consumption, would rise 176 percent from $1.27 per 100 cubic feet of water used to $3.50.

Water rates will also increase but not by as much. Water rates would rise 10 percent from $1.87 to $2.06 on those who use between 0 and 1,400 cubic feet of water. The rate would rise 15 percent, from $1.76 to $2.02 for those consuming between 1,400 and 15,000, and 20 percent, from $1.52 to $1.82, for those consuming between 15,000 and 100,000. Those who consume more than 100,000 cubic feet of water would see an increase of 25 percent, from $1.20 to $1.50. The water service charge would increase from $9.50 to $12.

The ordinance calls for an increase to the garbage and recycling fee, which would go from $2.35 to $4.35. This fee applies only to residential customers.

After all these expenses are totaled, residential customers will pay at least $20 more and many will pay $30 or $40 more in utilities per month. A residential customer who now uses 100 cubic feet of water per month pays about $33. Under the new plan, the customer would pay $56. Someone who uses 400 cubic feet pays $43, and that would jump to $73 under the proposal. A resident who uses 700 cubic feet would see their bill go from $53 to $90. Those who consume 1,000 cubic feet would pay $44 more in utilities, from $63 to $107.

In other news, a proposed ordinance that would have allowed ground-floor dwellings in the downtown died for lack of a motion. Washington residents Mary Patterson and Tim Coffey both spoke against the proposed ordinance.

Gerald Franzen owns the building on North Marion that is across the street from The Journal and which was once Carson?s Plumbing. Franzen wants to sell the building to his brother Dennis Franzen. According to Gerald, Dennis wants to open an electrician?s shop in the front third of the building and live in the back part of the building with his wife, Linda. This would violate the city?s ordinance against first-floor dwellings in the business district.

Under the proposed change, a ground floor dwelling would be permitted in the business district if it met the following criteria: 1) The entire front of the ground floor and no less than one-third of the total area is devoted exclusively to a permitted principle usage (such as a business); 2) The dwelling is occupied only by the owner, who is also the operator of the business, or by the owner?s immediate family; 3) The appearance of the property remain that of a permitted principle use.

The Washington Planning and Zoning Commission voted down the proposed ordinance 5-1 at its meeting in April. The council had the option of overriding the commission?s recommendation, which is why the proposal appeared before the council Wednesday.