AUGUST 8th CITY COUNCIL MEETING

After about 8 months of discussion related to water and sanitary sewer rates and the financial effect of last year's bond issue, the city council made 3 decisions that will influence our water and sewer bills.

First, the council ratified a previous decision that 50% of the debt associated with last year's sewer bond issue will be paid back from property taxes (which showed up on your last tax bill) and 50% will be paid back from an increase in sewer fees.

Second, effective September 1st, the sewer rate will be restructured which will result in no additional revenue to the city. The minimum charge, which residents pay no matter how much water they use, will increase by $1.51 per month and the consumption rate will decrease by 66 cents per every 100 cubic feet of water used.

This restructuring is being implemented to better reflect the amount of variable costs (those that increase or decrease depending on the amount of flow) versus fixed costs (those costs that stay the same no matter the amount of flow) necessary to operate the sanitary sewer system.

The final decision was that water rates will stay the same for an indefinite period of time and sewer rates will go up an additional 3.25% beginning the city's 2009 fiscal year.

In conclusion, I'd like to recognize the fine job the city's consultants, Galardi Consulting out of Portland did during the entire 8 month study as well as Joy Gannon, Director of Public Works who worked closely with them.