01132016 - News Article - Portage proposes 38 percent rate hike in sewer fees

Portage proposes 38 percent rate hike in sewer fees
NWI Times
Jan 13, 2016
http://www.nwitimes.com/news/local/porter/portage-proposes-percent-rate-hike-in-sewer-fees/article_ba0e10c3-563e-588c-ad3c-e71b81b66460.html

PORTAGE — The Portage Utility Services Board will consider a 38 percent residential rate hike in monthly sanitary sewer fees.

If passed, the funds will likely be used to support a bond issue of up to $9 million for various projects at the sanitary sewer plant and throughout the city.

Otto Krohn of O.W. Krohn and Associates presented the results of a rate study Wednesday to the board.

Krohn told the board that sanitary sewer rates of $23.50 per residential unit have not been increased in more than 20 years.

"Of all the utilities we could find, you're the lowest that doesn't use property taxes to supplement rates," said Krohn, adding that rate is "not sufficient to cover the costs of services."

Krohn proposed the board raise the rates to $32.50 per month for all residential units, including apartments and mobile homes.

That would provide a sufficient level to support a bond of $7 million to $10 million.

"You can't do projects until you get the revenue stream up," he said.

Mayor James Snyder, who chairs the board, said Portage's rates are and, even with the proposed increase, continue to be lower than neighboring communities.

If approved, Snyder said the rate increase would be done in conjunction with a bond issue. He did not have a dollar amount on that proposed issue.

Proceeds from the bond would finance several projects, including two at the wastewater treatment plant that would ultimately increase the plant's capacity by 13 percent, said City Engineer John Hannon.

Snyder said other major projects could include constructing a major trunk line that would be used as a bypass for the present line taking sewage from the city to the plant and the relocation of the ditch along Airport Road.

Board members are likely to act on the proposal next month. The rate increase and accompanying bond issue would also have to be approved by the City Council. Snyder said he hopes to have both approved by June.