Story originally printed in the Tomah Journal or online at www.tomahjournal.com
Published - Thursday, February 12, 2009
Council approves sewer rate increase
Sewer use rates will increase in Tomah next month for the first time in over 10 years.
The City Council approved a sewer rate increase — the first such increase in Tomah since 1997 — during its monthly meeting Tuesday. The increase will allow the Public Works and Utilities Commission to make debt payments and pay for the wastewater treatment plant operations and maintenance.
The increase takes effect in March and will increase sewer use costs to a fixed rate of $5 for 3/4 inch residential meters. The changes will also increase the variable rate to $4.75 per 100 cubic feet. according to Gene Laschinger of Town and Country Engineering, who presented information on the suggested rate increases and factors to the council Tuesday. The average projected rate for a Tomah resident will be $27.80 per month compared to $20.42.
“It is unfortunate that it comes right at this time,” Laschinger said. “But I have never seen a time that is ever good.”
Public Works Director Ken Patterson told the council that a rate increase was necessary. Julia Rusch also said that a rate increase was needed to pay debt payments. The rates were causing budget shortfalls several years ago, Laschinger said, but the utility had approximately $3 million in cash on hand to cover the debt payment.
The Sewer Utility had $2.35 million in expenses in 2008 with $1.68 million in revenues, leaving a shortfall of over $600,000. Based on a recent study, the utility will deplete the cash on hand to an undesirable level without a rate increase by the end of the year.
“We got by until now,” Patterson said. “We can no longer continue like this.”
The next rate increase is scheduled for 2012.
The Council also approved a request to pursue funding for 2009 road projects on Tuesday. The projects will include improvements to Hollister Avenue from Washington Street to Cameron Street and include several side streets. The Hollister Avenue project will be done over a three-year period starting in 2009, and could cost up to $8 million, but could be scaled down. Other projects will include work on Stoughton Ave. from Logan Street to Hollister Ave., and Townline Road from N. Glendale Street going approximately 950 feet to the east.
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