Group calls for city to alter water rate system

The Newton Water Rate Task Force will give its final report to the Newton City Commission at 7 p.m. Tuesday at City Hall.

Central to the task force’s finding’s are a goal to reduce budgeted water fund expenses by $300,000 a year.

The second recommendation is to hire a consultant to reevaluate the existing water and sewer rate structures.

“During several sessions, we looked at many aspects of city water rates,” said Racquel Thiesen, mayor and task force chairwoman. “Coming forward, we want to maintain the quality and quantity of water we have here in Newton and make sure the rates that come out of our work are fair and equitable.

“We want to be competitive for economic development and communities in surrounding areas,” she said.

Newton water rates were increased in July.

Newton water customers pay a minimum of $10.75 base fee, including 200 cubic feet of water, and then $5.95 for each additional 100 cubic feet of water.

Newton customers previously paid a minimum $10.75 base fee, which included 300 cubic feet of water, and then $3.45 for each additional 100 cubic feet.

Because of anticipated expenses related to the sewer system, sewer rates also are likely to take a jump soon if the structure is not changed, Thiesen said.

Among the factors the task force suggests the consultant take into consideration are a reevaluation of the minimum rate structure.

The task force members also came to the census they wanted to ensure Newton’s water rates were competitive with surrounding communities and competitive enough to promote economic development.

For this reason the task force did not request different rate structures for businesses and residents.

“If we protect businesses, we hurt residents. If we protect residents, we hurt businesses,” Thiesen said. “We wanted something that was fair and equitable.”

The task force’s report also included a recommendation any new water rate structure encourage conservation.

Jerry McKenzie, a local consultant on utility rates who spoke to the task force during their research, told the task force one way to encourage conservation would be to have higher rates for water during the summer when people are using more outside water.

Encouraging conservation would not only conserve the area’s water resources but increase the life expectancy of the water- system infrastructure, McKenzie said. Delaying infrastructure projects could result in fewer water rate increase in the long run, McKenzie said.

The task force further recommended the city implement a incremental annual increase to allow for a 20 percent reduction in 2010 and 2011.

Mike Keller, a business representative on the task force, said the city provided the task force with a lot of information on which to base its decisions, and the task force members seemed to come to a consensus on the recommendations in the end.

“I think the people on the committee all favor getting rate relief,” he said. “The city commission will have to look at ways to do that.”

The water rate task force’s recommendations are subject to approval by the city commission.

Thiesen said the water rate task force was charged with setting priorities for the water-rate structure. The consultant would ultimately set the rate structure.

“The task force did not feel comfortable setting the rate structure,” Thiesen said. “ We wanted a professional ratemaker to do that.”

Thiesen said the city would not know what if any savings residential water customers would see until the consultant did his work.

She also said the city does not know how much it will cost to hire McKenzie to evaluate the rate structure or when a new rate structure would be in place.

Thiesen said she thinks the task force, which was made up of both business representatives and residents, was able to come together to make recommendations that will benefit all parties in the long and short terms.

“I think it was one of the finest examples of citizens coming around an issue,” Thiesen said. “I think it was important we had both residents and business representatives, and both residents and business representatives got engaged in the process and participated in a decision-making role.”

Other items on the commission’s agenda include:

• A resolution adopting the Harvey County Multi-Hazard Mitigation Plan.

• A resolution authorizing LEED certification and designating the public works director as authorized signatory for the LEED certification for the fire station project.

• Consideration of an agreement with PKLS Architects for architectural services for the Warkentin House improvements.

• A report from the city manager on the state T-Link Transportation Task Force.