CRESTVIEW — If ordinances approved Monday night receive final approval upon second readings on May 9, city water, sewer and trash customers will see small increases in their monthly bills, and new home builders will see water tap fees nearly double.
The City Council first unanimously approved Waste Pro's request to pass increased tipping fees on to their customers. Residential customers will see a monthly increase from $17.25 to $18.16. Commercial rates will increase 72 cents to $23.72.
Slight increases in water and sewer rates, which haven't increased in decades, were also approved to fund needed city infrastructure improvements.
The city would receive an additional projected revenue of $115,200 based on the proposed 2 percent increase, bringing in an estimated $2,356,200 in the 2015-16 budget year.
FEW-CENT RAISE
If approved on second reading, the minimum water rate for the first 2,000 gallons consumed will increase 15 cents to $9.15. The charge for 3,000 to 5,000 gallons would increase from $1.85 to $1.90 per 1,000 gallons used.
The minimum sewer usage fee would rise 30 cents to $16.80 for the first 2,000 gallons of water used.
Residential Water and Sewer rates will have an additional increase each year for four years beginning on October 1, 2017. A provision in the ordinance requires the City Council to review the rates each year and lower or increase the fees as needed by ordinance.
Council members discussed the necessity of raising the rates to cover infrastructure needs.
Referencing a complaint "that stated because the rates haven't increased in so long that's no reason to do it now," Councilman Doug Faircloth commented, "Apparently people can still write letters to the editor when they haven't been to meetings to understand the need."
"We must do something about our capital improvement program," Councilman JB Whitten said. "The issue is not because we haven't raised it, but because we need to do it."
Councilman Shannon Hayes said inaction on consultant-recommended rate increases by previous councils has pushed the current council to have to take unpopular measures.
"The non-action by some previous officials puts us in a position where we have to do something," Hayes said. "Nobody was stepping up to the plate, trying to save a nickel. At some point, how long do you wait until you take action? How long do you wait until the house starts falling down on you?"
WATER TAP FEES
The biggest increases, however, will come to residents building new homes and having to hook into the city's water supply. Water tap fees will double, though still remain among the lowest in the region, Public Works Director Wayne Steele said.
Like water and sewer, water tap fees have not increased in decades, and now are as much as half the city's actual cost. Currently the city charges $450 to tap into the city water system.
But Public Works crews face $425 just for materials, and $448 for equipment use, plus administrative and labor expenses, which are about $200, Steele said.
"I don't like to bring these types of cost increases to the council but I have to do my job," Steele said. "This one here is a long time overdue."
The council unanimously approved increasing the fees. The fee for a standard 3/4-inch line would increase from $450 to $800. A 1-inch line tap would increase from $570 to $1,000.
This article originally appeared on Crestview News Bulletin: Crestview water, sewer, trash rates to increase
