Bandon hikes rates to cover operations
By Amy Moss Strong, Bandon Staff Writer
Thursday, June 18, 2009 |
BANDON — Bandon residents will pay an average of $3 more per month for sewage treatment starting July 1.
The extra revenue will ensure the sewer system can continue to operate and be maintained in accordance with Department of Environmental Quality requirements, said City Manager Matt Winkel. City Councilor Mike Claassen was the lone dissenting vote. Councilors Claudine Hundhausen, Nancy Drew, Geri Procetto, Blythe Tiffany and Brian Vick voted in favor of the 10 percent rate hike.
“Expenses are going up in all utilities but income is flat or decreasing,” Winkel said. “In the sewer fund we are falling way short.”
City officials expect expenditures to exceed revenues, causing the fund to decline by $71,495. The city had anticipated the fund would have $130,000 more than it does to start out the year.
The new rates are projected to increase annual sewer revenues by $74,600. The charge appears on the city electric bills.
“I’m comfortable that we’re fairly low on the scale compared to other cities and hopeful that the increase will be enough,” Winkel said.
Claassen said the council tried to form a committee to look at sewer rates and he felt a renewed effort to form such a committee should be made.
“How can we make this affordable?” Claassen asked. “These are dire times. I don’t see how we can ask for a sewer rate increase of a person who is just getting by.”
City Attorney Fred Carleton said the council has a legal obligation to maintain the sewer system.
A city charter amendment, adopted in 1995, restricted the City Council from increasing sewer utility rates. However, in a lawsuit determined that bond financing agreements require the city to maintain sewer rates at a level necessary to properly operate and maintain the system, and to meet debt service obligations. Such a rate increase doesn’t need to go to a public vote.
A Bandon residential customer using 5,000 gallons of water per month will pay $32.08 during the winter months and $28.36 with the summer discount in effect from June 15 to Oct. 15. Comparable sewer charges in other Oregon cities range from $30 to $65 per month, Winkel said.
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