» Council raises sewer rates

By Amy Moss Strong
Editor
Thursday, June 11, 2009 | 1 comment(s) Bandon residents will pay an average of $3 more per month for sewage treatment starting July 1, since the City Council voted to raise rates by 10 percent.

The extra revenue will ensure the sewer system can continue to operate and be maintained in accordance with Department of Environmental Quality requirements, said City Manager Matt Winkel. Councilors Claudine Hundhausen, Nancy Drew, Geri Procetto, Blythe Tiffany and Brian Vick voting in favor and Councilor Mike Claassen voted against the motion.

“Expenses are going up in all utilities but income is flat or decreasing,” Winkel said. “In the sewer fund we are falling way short.”

Winkel expects a slight shortfall for the sewer fund in the next fiscal year, with expenditures exceeding revenues, causing the fund to decline by $71,495. The city had anticipated the fund would have a fiscal year starting balance of $130,000 more than it does.

The new rates are projected to increase annual sewer revenues by $74,600. The charge appears on the city electric bills.

“I’m comfortable that we’re fairly low on the scale compared to other cities and hopeful that the increase will be enough,” Winkel said. Claassen said the council tried to form a committee to look at sewer rates and he felt a renewed effort to form such a committee should be made.

“How can we make this affordable,” Claassen asked. “These are dire times. I don’t see how we can ask for a sewer rate increase of a person who is just getting by.”

City Attorney Fred Carleton said the council has an obligation to maintain the sewer system.

“(The city) is a business and unlike the federal government, you can’t operate on a deficit,” Carleton said. “It needs to be run like a good business and that may be a burden ... (but) we have to set rates to meet operations and maintenance, per our contract with the bonds.”

A city charter amendment, adopted in 1995, restricts the ability of the City Council to increase sewer utility rates. However, in the Stadelman vs. City of Bandon sewer rate suit, the court ruled that a pre-existing June 30, 1992, bond financing agreement requires the city to maintain sewer rates at a level necessary to properly operate and maintain the system, and to meet the debt service obligations, Winkel explained.

A Bandon residential customer using 5,000 gallons of water per month would pay $32.08 during the winter months, and $28.36 with the summer discount in effect from June 15 to Oct. 15. Comparable sewer charges in other Oregon cities range from $30 to $65 per month, Winkel said.