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
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Front and rear hand
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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
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180 S. Main St.
Banks, Oregon
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