Washington County Enterprise-Leader
Sewer Rates Increase
EFFECTIVE IMMEDIATELY, RATE GOES TO $22.08 FOR FIRST 1,000 GALLONS
LINCOLN — Sewer rates in Lincoln will increase by 143 percent for the first 1,000 gallons of water and 12.5 percent for subsequent 1,000 gallons following a unanimous vote last week by Lincoln City Council.
Council members also approved an emergency clause which means the new rates will go into effect immediately. Aldermen Doyle Dixon and Gary Eoff were absent from the meeting.
For the first 1,000 gallons of water, the sewer rate will increase from $ 9.07 to $ 22.08. The rate increases from $4 to $4.50, for each 1,000 gallons after that.
“The bottom line is that nobody enjoys increases,” Mayor Rob Hulse said. “I don’t want to see our rates increase as well as nobody else. In order to meet our expenses, it’s past time we adjust these rates.”
A public hearing was held at 6 p.m., March 17, in the community room on Lincoln Square prior to the council’s 7 p.m. meeting across the street in City Hall. Most people at the public hearing were not happy about the proposed sewer rate increase. (A March 11 newspaper article about the public hearing gave an incorrect start time for the hearing).
Hulse explained in the public hearing the purpose of the sewer rate increase was to generate enough revenue to cover expenses of operating the wastewater treatment plant and sewer system. For 2014, the city received $224,895 in sewer revenue but incurred $381,415 in expenses, a deficit of more than $150,000.
With the new rates, the city expects to receive a total of $393,000 in revenue, enough to cover expenses while leaving a small balance for repairs and other needs of the system.
Hulse told people at the public hearing they could make comments about the rate increase but the meeting was not a debate session.
“I’m going to pay it like everyone else but that’s where we’ve got to be,” Hulse told about 25 people in the community room.
He compared the new rate
to what residents pay in Prairie Grove. Prairie Grove charges $19.18 for the first 1,000 gallons and $6.16 for each 1000 gallons after that. For a household that uses an average 3,400 gallons of water per month, Lincoln’s sewer bill would be $1.10 less than what someone pays in Prairie Grove, Hulse said.
“Lincoln is higher for the first 1,000 gallons but lower on all gallons after that,” Hulse pointed out.
Lincoln has about 983 customers who use an average 3,400 gallons of water per month. Hulse said the monthly sewer bill for an average user would be about $ 32.88, including the rate increase.
Several people at the public hearing wondered why a large increase was coming all at once, instead of incremental ones over the years. Others asked about reducing costs in other areas or making shifts in the budget. Some asked why the city did not notify residents about the public hearing through their water bills, instead of placing a small legal ad in the newspaper.
“I think you need to prioritize things a little better,” said Brian Moulder, Lincoln postmaster. “Can you allocate your money differently?”
Monte Domingos asked what the city would do about people who could not afford the rate increase.
“Will you shut them down?” asked Domingos.
“This town is mostly Social Security people and people who don’t have a lot of money to live on,” George Schooler added along the same argument. “There are too many people who can’t afford a gigantic raise like that.”
Alderman Doug Hutchens agreed the city should have raised sewer rates through the years but it had reached a point where it could not wait any longer.
“We haven’t had the people coming in to tie into our existing lines,” Hutchens said, explaining that growth has been flat for about 10 years from a housing standpoint.
“Expenses are going up but we have the same numbers in the pot to share the expense,” Hutchens added.
Hutchens said the city has to raise rates to provide the same service or cut services. To reduce the budget in other areas would mean a decrease in those services, Hutchens told those at the public hearing.
Hulse said the city has not increased rates to meet rising costs to operate its sewer system since 1998. The most recent rate increase was a 16 percent increase approved from 2012-2014 to cover the cost to upgrade the wastewater treatment plant to reduce phosphorus levels, as mandated by Arkansas Department of Environmental Quality.
“If you look at your normal household expenses since 1998, everything has gone up,” Hulse said. “We’ve kept our sewer rates down and it’s caught up to a point where we’ve got to adjust them.”
He added after the meeting, “We have a responsibility to keep our rates as low as we can but also comparable with what our expenses are.”
Resident Bill Bush said he realized the city is stuck with the situation and doesn’t have another option but to increase rates to bring in more revenue for the sewer system.
“Your hands are tied. You’re going to have to vote yes,” Bush said.
But he encouraged council members to pacify those who oppose the increase by looking at the city budget and finding ways to trim it.
“I bet there are some budget items that can be reduced or eliminated,” Bush said.
Hulse said he appreciated people coming to the public hearing to voice their concerns and opinions, adding that he hopes more people will attend future city council meetings. He said the suggestion to notify residents through their water bills about issues coming up is a good idea and the city would consider that in the future. He said he also heard other ideas that the council would “take back and look at.
Following the public hearing, council members walked across the street to consider the ordinance to increase sewer rates. None of the residents from the public hearing stayed to attend the regular council meeting.