The proposal to increase rates is a result of a utility rate study, which are conducted every few years. The study was led by GRW Engineers based in Lexington, Ky.
The study estimated water usage and charges, or revenue, to be flat, but operations and maintenance costs expecting to increase, making rate increases necessary.
“The city has grown to a point where the age of the water infrastructure, we have to make sure we can always maintain it and keep it in good repair, so ultimately, in 10, 15 or 20 years, it would be worse off and cost a lot more to do repairs,” said Dave Crouch, public utilities director.
Under the proposal, sewer rates would increase by 5 percent in 2012 and 2013; by 4 percent in 2014; and by 3 percent in 2015 and 2016. The average wastewater utility bill would increase by $1.95 a month, and a high usage bill, based of using 7,500 gallons a month, would increase by $2.93 a month, according to a presentation to Fairfield City Council.
Water rates, which are separated into a step rate structure, would also increase under the proposal.
The rate increase proposal calls for a 4 percent increase for the first 3,000 gallons of water, and a 15 percent increase over the minimum rate of 3,000 gallons in 2012, and would continue to increase incrementally until 2016.
City Council will vote on the rate changes next month.
About the Author