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About The independent. (Vernonia, Or.) 1986-current | View Entire Issue (May 16, 2002)
The INDEPENDENT, May 16, 2002 Page 13 anks council looking at proposal for steep water rate increases Heavy water users will feel a little parched if a proposed wa ter rate increase is implement ed by the City of Banks. The proposal presented at the May 14 city council meet ing, by consulting engineer Dale Merrell, was based on a recently completed, three- phase study that recommends significant increases in the wa ter rate beginning July 1. According to Merrell, most water utilities expect rate in creases next year in response to new accounting regulations that require utilities to institute a reserve fund for depreciation of equipment, by the 2003-2004 biennium. In addition, Banks has added customers and a new water plant. Previously, utilities were not required to set aside a reserve fund for the replacement of worn-out equipment. Merrell told council that the fund - which will never be enough to replace a water plant - should provide for ongoing mainte nance to make the plant last as long as possible. Merrell said that Banks is better prepared /or this change than many cities because they have been set ting some money aside in the Water fund for depreciation since 1997. The complicated water rate study was divided in three parts: the revenue requirement, the cost of service and the rate design. Actual water use from all residential, commercial and bulk water users inside and outside the city was analyzed and used to determine the per centage of water use by differ ent types of users. The proposed customer charge was determined by the cost of service for billing and materials and services. Accord ing to the study, billing costs the city $4.06 per month and gen eral costs for meters and ser vices are $12.59. Combined, the customer charge, per me ter, is proposed at $16.65. Cur rently customers are charged $12.50. The amount of water included with the customer charge will be increased from 200 cu. ft. to 400 cu. ft. with the rate increase. The commodity portion of the water rate was calculated by adding base costs, maxi mum day costs and maximum hour costs. Actual water use by residential, commercial and bulk customers was analyzed to determine the percentage of use for each and in what cost service category. The water system rate schedule proposed by the study is: Customer Charge (Base) In cludes 400 cu ft for residential customers: Inside city $16.65 Outside city $ 24.98 Commodity Charge (volume of water used per 100 cu ft) Inside City Limits $2.21 Residential $2.44 Commercial $2.67 Bulk Outside City Limits $3.32 Residential $3.66 Commercial $4.01 Bulk water rate schedule at the May 23rd meeting, along with final review of the budget. Income generated from the water rate is budgeted for the 2002-2003 fiscal year. Two years ago, when the city sought funding for the new water plant, a new water rate was established that would take effect on completion of the plant. That rate will not be enough to cover the actual costs for the water department. An analysis of the impact of the water rate on council mem bers’ water bills was included in the council packet. Council members water bills now range from $225 to $338 annually. With the rate increase their costs will range from $368 to $625 annually, with the same level of water usage. Mayor Bob Orlowski said the city would run a similar analysis, on request, for any water user. Because of the enormous impact of the increase in water user fees, the city will schedule informational meetings at a lat er date. The special water user fee instituted last year will end June 30th, slightly softening the increase. However, all water users will see an increase, though residential users who stay below the new 400 CuFt base charge will be minimally affected. Council will vote on the new Cell tower proposal A proposal to lease a corner of land adjacent to the city’s water tank for a Cingular cellu lar phone tower was presented to the council. The 40 ft. tower would be painted to match the tank and would be about 12 ft. taller than the tank. The city will explore a lease contract. In other business, council: • Proclaimed National Emer gency Medical Services Week, May 1 9 -25th. • Heard a request from Pete Periodic Review Edison, Arbor Village Home- City Planner K.J. Won told owners Association President, the council he has developed a to appear on the July agenda to work program for completion of discuss the park maintenance the periodic review of the city’s agreement and the water user comprehensive plan The city fee. will receive grant funding from • Directed the city attorney to the state to complete the 30- research whether the city or the month project. The purpose of homeowners' association is re the review is to update the sponsible for the cost of new city’s comprehensive plan and signs in Greenville Park. implement regulations with re • Appointed Christine Fore to spect to statewide planning the library commission and Ed goals. Ohlman chairman of the library commission. Property condemntion Quality Service Friendly Merchants BANKS AUTO PARTS 101 N. M AIN STREET - 5 0 3 -3 2 4 -1 0 6 0 FS75 FS85^ S trassel ’ s A uto R epair & H ydraulic H oses Polycut H ead/ 2-4-6 S piral W ire Autocut Line Head F lange H ead • S uction H oses A daptors - 3/16" to 2” B ulk O il P roducts 2.45 cu. in. 9-lb powertiead Quickstop™ Inertia Chain Brake Front and rear hand guards Backpack Blower S TtH L Are you ready for a Although the city is negotiat ing to purchase property need ed to protect the city’s water shed, the council unanimously authorized immediate legal ac tion to take possession of the property through condemna tion, because the owners of the property have an active logging permit. In addition to watershed protection, the value of the land is subject to the standing tim ber. Most of the cost of the ac quisition will be paid for by log ging operations on other city property. The city awarded that contract to RSG Forest Prod ucts at $453 per thousand board feet. 5 T IH L Ï 276 S unset , B anks 503-324-9808 SUNSET LAUNDRY W ash ...$1.00 D ry...25^ 180 S. Main St. Banks, Oregon ........................ ....... Ye Olde Dingheiser Pub & Restaurant COCKTAILS • BEER • WINE FOOD. KEGS & ICE TO GO Lunch & Dinner Daily 11:00 am - Closing Breakfast Sat-Sun 9 am - Noon r L B IN G O SUNDAYS 5-8 PM CASH PRIZES!! J All Lottery Games CLOSED MONDAYS 47100 NW SUNSET IIWY. MANNING • 324-4848 |
