Sisters water bond fee dropped

City residents will get a break on their utility bills starting in October.

The $6 bond fee that was imposed for water bond payoff and was then transferred to sewer debt is being discontinued.

Eileen Stein, City Manager, presented figures to the city council that showed a savings to the city of nearly $600,000 in interest by paying off the water bond 32 years early, utilizing the $6 bond fee.

With the dropping of the fee, sewer bond debt will be paid off from normal sewer service fees.

As reported earlier the $6 water bond fee was transferred to paying down the sewer bond in April, 2003.

Since the water fee had been imposed for "debt service," legal opinion was that it was permissible to transfer the fee to the sewer debt.

Recently, Councilor Sharleen Weed questioned the transfer of the bond fee.

At the September 30 City Council Workshop, Councilor Lon Kellstrom said, "We guaranteed a sewer fee of $39 per month for the first year and actually collected $45."

All councilors present favored dropping the $6 bond fee immediately.

The council will look into options for increasing the street maintenance fund (see story, page 1).

The council will not transfer the $6 charge again.