LAKEPORT ? A sewer rate study workshop held at the Lakeport City Council”s Tuesday meeting determined users rates need to be hiked. Customer”s bills in 2007-08 will see increases that match their impact on the sewer system. The rates will pay for maintenance and help secure a bond to pay for $2.2 million in improvements as required by a cease and desist order.
The moratorium on the sewer came after partially treated sewage overflowed from the system in April 2006. The order, placed in March 2007 by the regional water quality board, could shut down the system if improvements are not made by November.
While construction is underway and the city anticipates improvements will be completed in time, City Manager Jerry Gilham said the money had to be borrowed internally from the city, and now it needs to be paid back by selling bonds against the anticipated revenues. “The bonding pool requires 100 percent rate coverage so they know they will be paid back on their loan, so now we have the rate schedule before you,” Gilham said to the council.
The study presented at the workshop advised rates to be increased by 25-29 percent for single and multi-family residences. Legacy school would have a 7 percent increase and county entities using the system would have an increase of three percent for fiscal year 2007-08.
The difference in bills people receive, Gilham said, has to do with their usage of the system. “The rates are based on flow and how much they impact the system.”
Rate increases are typically based on cost of living increases of three percent each year, however, Lakeport residents have experienced only five rate increases in over a decade, according to Gilham.
“If your expenses are going up three percent per year, and your rates aren”t going up, you”re going to have to dip into funds, which you don”t want to do. You want the system to pay for itself,” Gilham said.
Councilman Bob Rumsfelt guesstimated at the meeting that the average monthly bill would jump from $25.32 to about $37.00.
“Sometimes the cost increases are more than a cost of living increase, which adds to the problem.”
While the council voted to approve moving forward with the rate increases on Tuesday, a final decision will be voted on at a future meeting to approve the hikes.
Contact Elizabeth Wilson at ewilson@record-bee.com
