HOPE – The Hope Town Council intends to phase in higher charges for water and sewage service.
The council unanimously gave its initial, first-reading approval Tuesday to a rate increase ordinance Tuesday. Essentially, the average household that uses 3,000 gallons of water will be paying nearly $22 more a month than what they are paying now. That breaks down to an additional $9 a month for water and $13 more a month for wastewater service, town manager Jason Eckart said.
Residents are advised that several factors such as connection or tap-on fees, meter inches, amount of water used and surcharges are factored into each water bill, so amounts will differ from month to month, as well as from home to home.
The same level of increase that received preliminary council approval on Tuesday was recommended last month by consultant Brandon Barthel of the Westfield-based Krohn & Associates. His firm was hired in January to perform a rate study on both water and sewage rates.
After a special meeting on April 4, the council requested that increases be established at 3% annually after a larger hike is enacted this year. Eckart said he took the council’s wishes to the consultant, who came up with the proposed incremental increases.
If final approval is given in May, the new rates would likely go into effect in July, Eckart said. But a date has not yet been chosen for the second and final reading. The council will be required to advertise and conduct a public hearing on the proposed rate hikes before they can vote a second and final time.
The planned phase-in for water rates calls for the cost to go up 21% the first year, rising to $16 more a month for the first 5,000 gallons. After that, increases will be in 3% increments annually over the next four years. The rate will be $16.48 more the second year, $16.97 the third, and an additional $17.48 the fourth year, Eckart said.
The ordinance also establishes a monthly minimum charge for water at nearly all homes in Hope. Beginning June 1, the minimum monthly charge will be $40 per 2,500 gallons. When the annual 3% increases begin, it will mean $41.20 the second year, $42.43 the third year and $43.70 the fourth.
Wastewater rates have remained the same for the past 16 years, Eckart said. If approved, the proposed sewage rate for residential customers will rise an additional $6.14 a month this year. After that, incremental increases will be an additional $6.32 the second year, $6.51 the third year, and $6.71 the fourth year.
The ordinance also calls for a new rate study to be commissioned every five years to avoid knee-jerk reactions, council president Ohmer Miller said.
“Unfortunately, this jump (in rates) is necessary for the town,” Eckart said.
For the complete story, see Thursday’s Republic.
