Water rates to change
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Last updated 5/14/1996 at Noon
The Sisters City Council, in its May 9 meeting, directed the city administrator to draft a resolution establishing new water rates to be presented to the council May 23.
The city has been wrestling with the issue of water rates since the completion of the new water system last summer. With new rates established based on the metered system, many Sisters residents saw their water bills leap dramatically. The city agreed to suspend the new charges until the rate structure was reviewed.
The new rates do not change the basic single-family residence base rate of $16.50 for up to 10,000 gallons per month. It lowers the overage rate from $1.65 to $1.10 per 1,000 gallons in excess of the base 10,000 gallons per month. There is an additional $6 per month charged to single-family residents, or those with water meter pipes measuring more than 3/4-inch in diameter.
The Farm Home Administration requires that each dwelling unit, or equivalent dwelling unit be assessed $6 for repayment of the FmHA water system improvement loan. Some businesses and multi-family developments will be assessed for multiple EDUs. A business with a four-inch meter would be assessed on the basis of 28.04 EDUs for a total monthly loan repayment fee of $168.24.
There is concern on the council that the EDU concept would raise more funds than necessary for the annual loan payment. City Attorney Geoff Gokey said the loan requirements are specific about there being a $6 monthly fee for each EDU. He said the council could, however, devise a different method of defining "equivalent dwelling unit."
Councilor Jean Cooper favored the new EDU assessment method saying it would permit the building of a reserve fund to be used in emergencies. Gokey warned that the funds could not be used for anything except the repayment of the water improvements loan. He added that money could be borrowed from such a fund as long as the fund was maintained at minimum of approximately $42,000. This is the amount of the reserve fund in excess of the annual payment required by the loan agreement.
Mayor Dave Moyer and Councilor Gary Miller are opposed to collection of more money than is needed for the loan repayment, despite the requirements of the loan contract.
The council directed City Administrator Warren, in drafting the water rate resolution, to include a provision for further study of the EDU aspect of fee assessments.
The city staff also was directed to determine the cost of reimbursing Sisters residents who voluntarily installed water meters before the city's recent water improvement project. The project, which included the installation of meters, was funded by a grant and loan from the Farm Home Administration.
The council also approved a Water Management Plan presented by City Administrator Barbara Warren. The plan, which establishes water conservation practices should they be needed, was drafted as part of the requirements of the FmHA loan.
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