In response to citizen questions about the rate increases, I offer the following additional information about the USDA-Rural Development Water and Sewer Project rates. 

There are seven different rates in the City water and sewer rate structure.  Not all rates apply to all customers, so please, do not add up all the rates found in Council Resolution No. 2010-14 because that would not be a real bill.  Please see the three examples below to understand how the rate increases may apply to your bill: 

Example 1:  Minimum charge for all customers.  Even with a zero meter reading, customers will pay $38.25 per month.  This charge includes an increase of $14.40 per month, or 37.5%.   This charge pays for fixed City water and sewer system costs. 

Example 2:  For a customer with a meter reading of 600 cubic feet during a billing period, the bill will be the minimum $38.25, plus $27 for consumption charges.  In this example the bill is $65.25 per month.  The consumption rate for 100 cubic feet includes an increase of ten cents for water and fifty cents for sewer.  In this case, the consumption rate increased approximately 15%, and the total bill increased 38%.  The consumption charges pay for the cost associated with producing 100 cubic feet of water and processing 100 cubic feet of sewer.

Example 3:  For customers with a private well for drinking water, the City requires a flat rate charge for sewer.  This charge is now $39.75. The flat rate sewer charge was increased 47%.

No one enjoys rate increases.  The increases are the minimum needed to maintain a safe and effective system.  Also, City Council Members worked hard to find the fairest method to apply the rates, and they consider many factors.  With the new rate structure, the billing and capital charges apply to all customers, even customers with a vacant building or water shut off.  If you have questions or concerns, please contact me at City Hall or via email.

Labels: USDA-RD, Utility Rates

The City Council meeting scheduled for 7:00 pm, Tuesday, February 2, 2010 is a very important meeting.
The City Council may decide on new water and sewer rates which will impact all our customers.  The rates will be going up to pay for needed improvements to the water and sewer system to provide safe and healthy water and sewer service to homes and businesses in Rogers City.

Water rates may go up by about 25% and sewer rates may go up about 50%.  This could result in an increase of about $10-12 per month for the average customer. 

Whatever your thought about these improvements and their cost, this meeting is your opportunity to speak your mind to City Council.

Labels: USDA-RD, Utility Rates

The City has been working for over a year to obtain funds to make needed improvements to our water and sewer systems. Our staff, including financial consultants and our engineering firm, C2AE, have been planning and engineering to help accomplish this important work. If all goes well, the project construction will begin in 2010.

Today, the City Council took an important step in the process of making these improvements. They approved making an application to the US Department of Agriculture (USDA) Rural Development (RD) for the projects shown at the link below. Click on the link to see a map showing where all the projects are located. If you have any questions, please contact me.
USDA-RD%20Project%20Locations.pdf

Making all the improvements shown on this map may cause an increase in water and sewer rates of about 34%. This rate increase may be reduced depending on exactly what work is done and what other funding and financing become available. City Council, and staff members, such as Chuck Keiliszewski, Water Superintendent, Ray Hansen, Waste Water Treatment Plant Superintendent, and myself do not want to increase the rates; however, if we don't make the needed improvements to the water and sewer systems, failures in the system will cause service disruption and even greater expenses in the years ahead.

The proposed changes are throughout the City and effect the water quality and sewer disposal of everyone; therefore, the cost of the work will not be levied as a special assessment, but as a rate increase for all customers.

If you have any questions, please contact me.

Labels: C2AE, USDA-RD, Water and Sewer systems