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Sewer, water rates seen as balancing act
(by Joseph Koziol Jr. - May 30, 2012)
Sewer, water rates seen as balancing act
By JOSEPH KOZIOL JR.
Chardon City Council's water and sewer committee will spend one more session seeking the right formula for increasing water and sewer rates.
The committee met last week for a second time on the possible rate hikes and planned to meet Thursday (May 31) in an attempt to provide acceptable increases that will cover operating costs and debt payments for the two utilities.
Newly appointed Finance Director Mate Rogonjic said the committee would be provided with a few new scenarios to consider.
The city's general fund, which is now used to cover a portion of debt payments, is one of the main considerations the committee is looking at.
"Absent adjustments to the water and sewer rates, the general fund would be required to transfer approximately $653,000 annually in additional subsidies for water and sewer operations, which would hinder efforts to address other service and capital needs throughout the city," Mr. Rogonjic wrote in a draft proposal.
The committee, which initially looked at proposals that would increase rates by 6 percent or 33 percent, quickly decided that the higher figure would be too great a burden for residential customers to bear.
The committee then turned its attention to possibly adjusting rates higher for commercial and industrial development and easing the burden for residential customers.
Mr. Rogonjic said several municipalities, such as Middlefield, charge commercial and industrial developments higher rates. The idea is that businesses have larger mains and meters and require higher volumes of water and higher treatment costs.
Currently, all customers pay the same rate in Chardon.
The committee looked at three scenarios for possible rate hikes last week.
For one, it looked at keeping the current system of charging all the same rate.
A second scenario would reduce the burden to residents while significantly increasing costs for commercial and industrial development by hiking both the water and sewer rates.
A third scenario would increase rates for sewer use but not water for commercial and industrial development.
Mr. Rogonjic said the committee wants to study a few more alternatives and look at the impact on the general fund before making a recommendation to the full City Council, possibly by its June meeting.
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