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Rates decrease; hearing set
Thelma Grimes
San Pedro Valley News-Sun
For several months City Council members talked about possible rollbacks or reductions for water and wastewater rates, but the actual decision ended up doing little for bill-paying customers.
On March 26, City Council selected a plan to reduce both water and wastewater rates, but Brad Hamilton, the city's public works director, said the changes will make little difference.
"Overall it's not a huge change for anyone," he said. "These rates are still what we need in order for the public utilities to break even. Right now water is still operating in the red, but will break even next year. Even though these rates won't make a difference, it is important to review the rates every year."
In moving forward with the process, the City Council approved an option that would give a break to residents who use between 11 and 30 units of water a month.
The city currently charges residents through a tier system as follows: the first 5 units are $1 each, the next 5 are $1.50 each, the next 10 units are $2.50 each, and after 20 units they are $3.50 each. A unit equals 748 gallons.
With the changes, residents will now be charged $2.50 for water use between 11 and 30 units.
If the proposed changes are approved after the May 14 public hearing, for 20,000 gallons of water residents will go from paying $69.08 a month to $62.33, or $6.75 less a month.
Hamilton said reductions will also do little for residents as temperatures continue to rise this summer. Residents use more water in the summer to water plants, he said.
Last summer, right after the council approved the rate hikes, many residents complained that the charges are not only more than they had expected, but complained that they are unfair.
A Prickly Pear resident went from paying about $69 for 52 units of water in 2006 to $157 for the same amount in 2006. With the proposed changes, that resident will pay around $144 or $13 less than last year.
Hamilton said the council had to approved drastic changes to the rate structure last year because water rates hadn't been increased for 10 years.
Councilwoman Kathy Suagee said she likes the results of the rate increases because the tier system also pushes residents to conserve water. Jim Cox, the city's finance director, said that worked as water use over the last year has decreased by 19 percent.
However, Councilwoman Lori McGoffin expressed concerns about the current rates and the proposed rates during the March 12 council meeting. There is little being done to help the average family, she said.
At the same meeting the council ordered Hamilton and Cox to come back with more options. In the March 26 meeting, the council discussed two more options, even commenting on how they liked a plan that would give more of a break to families using less than 20 units a month, and increase costs for those using more than 50 units.
However, after council members and staff expressed concerns over a lack of data, the council voted to move forward with the original plan that would have the least impact on the city.
Cox and Hamilton said a rate study at this point was hard to put together because they only have seven months of data, and they would be able to make a better assessment of the situation after a full year.
With the current data, Cox projected that the proposed changes would mean a $13,500 difference in revenues for the city.
While City Manager Martin Roush and Hamilton said the major increases were the right thing for the city to do, the council has been met with plenty of criticism from the public and several problems have come up since the rates were implemented last April.
In January, the council approved crediting customers hooked to master meters in manufactured home parks more than $11,500 because they had been overcharged. Cox explained that because of the tier system, a master meter, which services several families, was registering high water use, therefore the city was charging higher amounts.
Wastewater adjustments are also needed for master-meter customers. Cox said the manufactured home residents are being charged unfairly.
Just like with water, the meters record high rates of water use, when on average the residents are using less than other residents in single-family dwellings.
However, City Attorney Ann Roberts halted the changes planned for wastewater rates, stating more work needs to be done before the city can move forward.
The city doesn't need anymore lawsuits over utility rates, she said.
The council will hear public comments regarding the water and wastewater rates in a public hearing on Monday, May 14 at 7 p.m. in council chambers.
San Pedro Valley News-Sun
For several months City Council members talked about possible rollbacks or reductions for water and wastewater rates, but the actual decision ended up doing little for bill-paying customers.
On March 26, City Council selected a plan to reduce both water and wastewater rates, but Brad Hamilton, the city's public works director, said the changes will make little difference.
"Overall it's not a huge change for anyone," he said. "These rates are still what we need in order for the public utilities to break even. Right now water is still operating in the red, but will break even next year. Even though these rates won't make a difference, it is important to review the rates every year."
In moving forward with the process, the City Council approved an option that would give a break to residents who use between 11 and 30 units of water a month.
The city currently charges residents through a tier system as follows: the first 5 units are $1 each, the next 5 are $1.50 each, the next 10 units are $2.50 each, and after 20 units they are $3.50 each. A unit equals 748 gallons.
With the changes, residents will now be charged $2.50 for water use between 11 and 30 units.
If the proposed changes are approved after the May 14 public hearing, for 20,000 gallons of water residents will go from paying $69.08 a month to $62.33, or $6.75 less a month.
Hamilton said reductions will also do little for residents as temperatures continue to rise this summer. Residents use more water in the summer to water plants, he said.
Last summer, right after the council approved the rate hikes, many residents complained that the charges are not only more than they had expected, but complained that they are unfair.
A Prickly Pear resident went from paying about $69 for 52 units of water in 2006 to $157 for the same amount in 2006. With the proposed changes, that resident will pay around $144 or $13 less than last year.
Hamilton said the council had to approved drastic changes to the rate structure last year because water rates hadn't been increased for 10 years.
Councilwoman Kathy Suagee said she likes the results of the rate increases because the tier system also pushes residents to conserve water. Jim Cox, the city's finance director, said that worked as water use over the last year has decreased by 19 percent.
However, Councilwoman Lori McGoffin expressed concerns about the current rates and the proposed rates during the March 12 council meeting. There is little being done to help the average family, she said.
At the same meeting the council ordered Hamilton and Cox to come back with more options. In the March 26 meeting, the council discussed two more options, even commenting on how they liked a plan that would give more of a break to families using less than 20 units a month, and increase costs for those using more than 50 units.
However, after council members and staff expressed concerns over a lack of data, the council voted to move forward with the original plan that would have the least impact on the city.
Cox and Hamilton said a rate study at this point was hard to put together because they only have seven months of data, and they would be able to make a better assessment of the situation after a full year.
With the current data, Cox projected that the proposed changes would mean a $13,500 difference in revenues for the city.
While City Manager Martin Roush and Hamilton said the major increases were the right thing for the city to do, the council has been met with plenty of criticism from the public and several problems have come up since the rates were implemented last April.
In January, the council approved crediting customers hooked to master meters in manufactured home parks more than $11,500 because they had been overcharged. Cox explained that because of the tier system, a master meter, which services several families, was registering high water use, therefore the city was charging higher amounts.
Wastewater adjustments are also needed for master-meter customers. Cox said the manufactured home residents are being charged unfairly.
Just like with water, the meters record high rates of water use, when on average the residents are using less than other residents in single-family dwellings.
However, City Attorney Ann Roberts halted the changes planned for wastewater rates, stating more work needs to be done before the city can move forward.
The city doesn't need anymore lawsuits over utility rates, she said.
The council will hear public comments regarding the water and wastewater rates in a public hearing on Monday, May 14 at 7 p.m. in council chambers.
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