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Burton sewer, water rates expected to rise
(by Joseph Koziol Jr. - March 17, 2010)
Burton sewer, water rates expected to rise
By JOSEPH KOZIOL JR.
Burton Village will undertake a study to help establish what officials called reasonable water and sewer rates.
The village's board of public affairs invited members of the Ohio Rural Community Assistance Program to assist in setting up a rate structure that is "fair, equitable and stable."
Curt Johnson, a member of the three-person public affairs board, said members of the community assistance program instructed the village to consider the costs for each operation, including future needs, to set rates.
Josh Eggleston, of the community assistance program, is collecting data from the village to look at the financial history, production history, water-use history, customer billing information and operation and maintenance history.
All of that must be taken into account before rate increases are implemented, Mr. Johnson said.
He said the current rates have been able to keep up with the year-to-year costs of operating the village's water and sewer system but have not taken into account future expenses that come with keeping up an aging system.
Much of the system that serves the village is estimated to be about 83 years old. The village's first water tower, he said, lasted from 1928 to 1959. He said the village is looking at a water tower that probably has exhausted its lifetime as it is older than the first water tower.
Mr. Johnson said the village has been lax in raising rates to keep up with those infrastructure costs.
He said that Mr. Eggleston explained that every part of the system, from water mains, to pumps to its buildings has a life expectancy. Planning the rates to account for the eventual replacement of those system parts is essential in determining rates, he said.
"Personally, I don't think we've done a good job with that aspect," Mr. Johnson said.
He said Mr. Eggleston also used examples of what other communities are charging for similar services. He said those in Solon and the Village of Garrettsville pay just over $50 a month for sewer service.
By comparison, Mr. Johnson said, village residents pay on average about $64 per quarter for sewer service. He said village residents are paying significantly less than others around the area, which means there will have to be increases to cover all the costs for operating the system.
Mr. Johnson said only nominal increases in the rates have been instituted since 1988, meaning that residents could see sharp increases to make up for what should have been instituted incrementally.
Mr. Johnson said Mr. Eggleston will return to the village with recommendations on those rate hikes. "They can't say you will institute them, but they will offer recommendations, which probably we would do well to follow," Mr. Johnson said.
He said where the increases will hit harder still is to be determined. He said the higher increases could be for water bills or sewer bills.
He said Mr. Eggleston's recommendations are not expected before May.
With the village looking at a $6 million upgrade of its waste-water treatment plant, Mr. Johnson said, it is important to consider rates that will allow the village to afford those upgrades.
Planning for the first stage of the upgrades, he said, is set for 2011.
He said the village has funds to handle everyday expenses, but would not have sufficient funds to handle future expenses, nor should a catastrophe occur.
He said because the village has been lax through the years in raising rates to cover those future costs, it is important to put the new rates in place as soon as possible.
"My feeling is we should start making rate increases as soon as possible," he said. "We are examining our rate structure to ensure it's what we need to carry us into our future."
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