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Utility rates may jump by Nov. 1: Public Hearing Monday
CAROL BROEDER and BRENDAN FITZSIMONS/Arizona Range News
Willcox residents may be paying more for utilities within 20 days.
Citizens can offer their views on the city's plans Monday night at a City Council meeting.
Water rates currently charged for residential and commercial service would jump by nearly 30 percent on Nov. 1 if the council approves city staff's proposal.
The sewer rate would jump by 16.9 percent next month. Additional increases would come in November 2005 and November 2006.
Gas rates would increase 6.6 percent next month and additional charges would come in November 2005 and November 2006.
The public hearing on proposed utility-rate increases will be held at 7 p.m. on Monday, Oct. 18.
The council and city staffers spent 85 minutes earlier this month discussing hikes in charges for sewer, gas and water, scheduled to begin Nov. 1. The council appeared to be split on increasing the monthly service charge as well as the city's usage charge.
If a draft proposal is approved by the council, water rates would jump by 30 percent, sewer rates by 65 percent and gas rates by eight percent.
Mayor Marlin S. "Mick" Easthouse said the increases are necessary, as did Vice Mayor Roy Ard.
Councilman Phillip Rodriguez expressed doubts about several of the proposed rate increases, while Councilman Joe Long said, "We have to bite the bullet and do it right now."
Usage charges also will increase if the council passes the staff's proposals.
The current usage charge for water and sewer is $1.50. The proposed charge would jump the cost by 17 cents to $1.67.
The gas usage fee is now $1.56 and would increase by 54 cents to $2.10 this year. In 2005 and 2006, the fee would increase to $2.50 and $2.90, respectively.
During the summer, Jeff Palmer, the city's finance director, told the council that the goals are "not to raise utility rates for a profit motive, but . . . to treat our utilities as an efficient business that is able to respond to changing demands."
Palmer added, "Rates do need to be increased for the protection of the city's utilities."
He said all of the city's utility operations have recorded net losses in recent years and the city is facing rising costs in operations.
All three utilities have suffered net losses in recent years, and there are rising costs in operations, he said.
Water and sewer main lines have been in place for many years, and the gas system still has miles of outdated metal pipe that needs replacement with PVC pipe, Palmer said.
The city also needs a new gas regulator station "for many of the same reasons we need a new water well. We only have one regulator station which means any major catastrophe or problem with the existing station and the city would be without gas," he said.
Gas service
The current gas rate is $6.466 per one thousand cubic feet of natural gas (MCF), plus a base rate of $7.50. The city's share is $1.56 per MCF, Palmer said.
If the draft law passes, the base rate effective Monday, Nov. 1, 2004, would be $8 per MCF. It would increase to $9 on Nov. 1, 2005, and $10 on Nov. 1, 2006.
The city usage charge, effective Monday, Nov. 1, 2004, would be $2.10. It would increase to $2.50 on Nov. 1, 2005, and $2.90 on Nov. 1, 2006.
The city usage charges will be added to the wholesale charges for the purchase of gas per MCF that Wasatch Energy charges the city and the pipeline (carrying) charges paid to El Paso Natural Gas Co. to compute actual billing rates.
The combined gas/water connect fee would be $20 for first-time customers. The combined gas/water reconnect fee would be $30.
The proposed installation fee for gas is $800. The current installation fee is $175, Palmer said.
If it is determined the installation is not of an ordinary nature, the city will notify the consumer prior to installation and actual costs will be billed.
Connection fees for extending gas lines run from $14 to $20 per linear foot, depending upon the size of the main and whether the particular street is improved or unimproved.
Water service
The monthly service charge is based on the size of water service.
The current residential base rate is $10.43 plus $1.24 per 1,000 gallons, Palmer said.
For a single residential dwelling unit, the proposed monthly service charge is $13.43 for a 3/4" meter and $20.82 for a 1" meter.
For a multiple dwelling or commercial use, the monthly service charge would be $13.43 for a 3/4-inch meter, $20.82 for a one-inch meter, $35.59 for a 1 1/2-inch meter, $65.17 for a two-inch meter, $116.92 for a three-inch meter, and $227.73 for a four-inch meter.
The water usage charge would be $1.25 per thousand gallons, 2,001-6,000 gallons usage; $1.40 per thousand gallons, 6,001-10,000 gallons usage, $1.55 per thousand gallons, 10,001-15,000 gallons usage, and $1.65 per thousand gallons for usage over 15,000 gallons.
The first 2,000 gallons of water are included at no additional charge for all customers.
The water installation fees will be $800 for a 3/4-inch meter, $800 for a one-inch meter, $1,100 for a 1 1/2-inch meter, $1,300 for a 2-inch meter turbine, and $1,800 for a 2-inch meter compound.
The three-inch meter compound and four-inch meter compounds are by bid. By bid means that the city staff will analyze needs, then will bid an appropriate price for the installation fees. "Appropriate price" is defined as an amount that will cover all city expenses on the installation.
The connection fee for extending water lines runs from $14 to $20 per linear foot based on the size of the main and whether the street is improved or unimproved.
Sewer service
The monthly service charge is based on the size of water service.
The current residential base rate is $11.769 plus 1.37 per 1,000 gallons, Palmer said.
If the draft law passes, the monthly service charge would be $13.79 for a 3/4-inch residential meter, $18.76 for a one-inch residential meter, $13.79 per unit for a multiple dwellings meter.
The monthly service charge would be $20.05 for a 3/4-inch commercial meter, $25.02 for a one-inch commercial meter, $37.53 for a one-and-one-half-inch commercial meter, $52.53 for a two-inch commercial meter, $100.07 for three-inch commercial meter, and $162.61 for a four-inch commercial meter.
On Nov. 1, 2005, the monthly service charge would increase to $14.79 for 3/4-inch residential, $20.12 for one-inch residential, and $14.79 per unit for multiple dwellings.
The monthly service charge would be $21.50 for a 3/4-inch commercial meter, $26.83 for one-inch commercial meter, $40.26 for a one-and-a-half-inch commercial meter, $56.34 for a two-inch commercial meter, $107.33 for a three-inch commercial meter, and $174.41 for a four-inch commercial meter.
Effective Nov. 1, 2006, the monthly service charge would increase to $15.79 for a 3/4 inch residential meter, $21.48 for a one-inch residential meter, and $15.79 per unit for multiple dwellings.
The monthly service charge would increase to $22.96 for a three-quarter-inch commercial meter, $28.65 for a one-inch commercial meter, $42.98 for a one-and-a-half-inch commercial meter, $60.15 for a two-inch commercial meter, $114.59 for a three-inch commercial meter, and $186.32 for a four-inch commercial meter.
The city usage charge for all customers would be $1.67 per 1,000 gallons.
In Nov. 1, 2005, the charge would increase to $1.97 and $2.27 in Nov. 1, 2006.
The city usage charges will be computed based on the average of the "winter quarter" (December, January, and February) of water usage.
The average usage charge will remain unchanged throughout the year.
The philosophy is that irrigation expenses are not using system resources and using the winter months to calculate the billing is more effective for users.
Rates can be adjusted if special circumstances, such as leaks, occur.
Under the current draft, the monthly service and usage charges for gas and sewer will be changed in April of each year to meet the Consumer Price Index (CPI) from the preceding calendar year.
Palmer said the city has a level-pay program for utilities, but a customer's bills have to be current for one year to be eligible.
He said only about 50 of the city's 1,500 customers are taking advantage of the program, because most of the people who apply do not qualify.
The council's public hearing on the proposed rate increases will begin at 7 p.m. on Monday, Oct. 18, in the council chambers at 207 W. Maley St., adjacent to the library.
Willcox residents may be paying more for utilities within 20 days.
Citizens can offer their views on the city's plans Monday night at a City Council meeting.
Water rates currently charged for residential and commercial service would jump by nearly 30 percent on Nov. 1 if the council approves city staff's proposal.
The sewer rate would jump by 16.9 percent next month. Additional increases would come in November 2005 and November 2006.
Gas rates would increase 6.6 percent next month and additional charges would come in November 2005 and November 2006.
The public hearing on proposed utility-rate increases will be held at 7 p.m. on Monday, Oct. 18.
The council and city staffers spent 85 minutes earlier this month discussing hikes in charges for sewer, gas and water, scheduled to begin Nov. 1. The council appeared to be split on increasing the monthly service charge as well as the city's usage charge.
If a draft proposal is approved by the council, water rates would jump by 30 percent, sewer rates by 65 percent and gas rates by eight percent.
Mayor Marlin S. "Mick" Easthouse said the increases are necessary, as did Vice Mayor Roy Ard.
Councilman Phillip Rodriguez expressed doubts about several of the proposed rate increases, while Councilman Joe Long said, "We have to bite the bullet and do it right now."
Usage charges also will increase if the council passes the staff's proposals.
The current usage charge for water and sewer is $1.50. The proposed charge would jump the cost by 17 cents to $1.67.
The gas usage fee is now $1.56 and would increase by 54 cents to $2.10 this year. In 2005 and 2006, the fee would increase to $2.50 and $2.90, respectively.
During the summer, Jeff Palmer, the city's finance director, told the council that the goals are "not to raise utility rates for a profit motive, but . . . to treat our utilities as an efficient business that is able to respond to changing demands."
Palmer added, "Rates do need to be increased for the protection of the city's utilities."
He said all of the city's utility operations have recorded net losses in recent years and the city is facing rising costs in operations.
All three utilities have suffered net losses in recent years, and there are rising costs in operations, he said.
Water and sewer main lines have been in place for many years, and the gas system still has miles of outdated metal pipe that needs replacement with PVC pipe, Palmer said.
The city also needs a new gas regulator station "for many of the same reasons we need a new water well. We only have one regulator station which means any major catastrophe or problem with the existing station and the city would be without gas," he said.
Gas service
The current gas rate is $6.466 per one thousand cubic feet of natural gas (MCF), plus a base rate of $7.50. The city's share is $1.56 per MCF, Palmer said.
If the draft law passes, the base rate effective Monday, Nov. 1, 2004, would be $8 per MCF. It would increase to $9 on Nov. 1, 2005, and $10 on Nov. 1, 2006.
The city usage charge, effective Monday, Nov. 1, 2004, would be $2.10. It would increase to $2.50 on Nov. 1, 2005, and $2.90 on Nov. 1, 2006.
The city usage charges will be added to the wholesale charges for the purchase of gas per MCF that Wasatch Energy charges the city and the pipeline (carrying) charges paid to El Paso Natural Gas Co. to compute actual billing rates.
The combined gas/water connect fee would be $20 for first-time customers. The combined gas/water reconnect fee would be $30.
The proposed installation fee for gas is $800. The current installation fee is $175, Palmer said.
If it is determined the installation is not of an ordinary nature, the city will notify the consumer prior to installation and actual costs will be billed.
Connection fees for extending gas lines run from $14 to $20 per linear foot, depending upon the size of the main and whether the particular street is improved or unimproved.
Water service
The monthly service charge is based on the size of water service.
The current residential base rate is $10.43 plus $1.24 per 1,000 gallons, Palmer said.
For a single residential dwelling unit, the proposed monthly service charge is $13.43 for a 3/4" meter and $20.82 for a 1" meter.
For a multiple dwelling or commercial use, the monthly service charge would be $13.43 for a 3/4-inch meter, $20.82 for a one-inch meter, $35.59 for a 1 1/2-inch meter, $65.17 for a two-inch meter, $116.92 for a three-inch meter, and $227.73 for a four-inch meter.
The water usage charge would be $1.25 per thousand gallons, 2,001-6,000 gallons usage; $1.40 per thousand gallons, 6,001-10,000 gallons usage, $1.55 per thousand gallons, 10,001-15,000 gallons usage, and $1.65 per thousand gallons for usage over 15,000 gallons.
The first 2,000 gallons of water are included at no additional charge for all customers.
The water installation fees will be $800 for a 3/4-inch meter, $800 for a one-inch meter, $1,100 for a 1 1/2-inch meter, $1,300 for a 2-inch meter turbine, and $1,800 for a 2-inch meter compound.
The three-inch meter compound and four-inch meter compounds are by bid. By bid means that the city staff will analyze needs, then will bid an appropriate price for the installation fees. "Appropriate price" is defined as an amount that will cover all city expenses on the installation.
The connection fee for extending water lines runs from $14 to $20 per linear foot based on the size of the main and whether the street is improved or unimproved.
Sewer service
The monthly service charge is based on the size of water service.
The current residential base rate is $11.769 plus 1.37 per 1,000 gallons, Palmer said.
If the draft law passes, the monthly service charge would be $13.79 for a 3/4-inch residential meter, $18.76 for a one-inch residential meter, $13.79 per unit for a multiple dwellings meter.
The monthly service charge would be $20.05 for a 3/4-inch commercial meter, $25.02 for a one-inch commercial meter, $37.53 for a one-and-one-half-inch commercial meter, $52.53 for a two-inch commercial meter, $100.07 for three-inch commercial meter, and $162.61 for a four-inch commercial meter.
On Nov. 1, 2005, the monthly service charge would increase to $14.79 for 3/4-inch residential, $20.12 for one-inch residential, and $14.79 per unit for multiple dwellings.
The monthly service charge would be $21.50 for a 3/4-inch commercial meter, $26.83 for one-inch commercial meter, $40.26 for a one-and-a-half-inch commercial meter, $56.34 for a two-inch commercial meter, $107.33 for a three-inch commercial meter, and $174.41 for a four-inch commercial meter.
Effective Nov. 1, 2006, the monthly service charge would increase to $15.79 for a 3/4 inch residential meter, $21.48 for a one-inch residential meter, and $15.79 per unit for multiple dwellings.
The monthly service charge would increase to $22.96 for a three-quarter-inch commercial meter, $28.65 for a one-inch commercial meter, $42.98 for a one-and-a-half-inch commercial meter, $60.15 for a two-inch commercial meter, $114.59 for a three-inch commercial meter, and $186.32 for a four-inch commercial meter.
The city usage charge for all customers would be $1.67 per 1,000 gallons.
In Nov. 1, 2005, the charge would increase to $1.97 and $2.27 in Nov. 1, 2006.
The city usage charges will be computed based on the average of the "winter quarter" (December, January, and February) of water usage.
The average usage charge will remain unchanged throughout the year.
The philosophy is that irrigation expenses are not using system resources and using the winter months to calculate the billing is more effective for users.
Rates can be adjusted if special circumstances, such as leaks, occur.
Under the current draft, the monthly service and usage charges for gas and sewer will be changed in April of each year to meet the Consumer Price Index (CPI) from the preceding calendar year.
Palmer said the city has a level-pay program for utilities, but a customer's bills have to be current for one year to be eligible.
He said only about 50 of the city's 1,500 customers are taking advantage of the program, because most of the people who apply do not qualify.
The council's public hearing on the proposed rate increases will begin at 7 p.m. on Monday, Oct. 18, in the council chambers at 207 W. Maley St., adjacent to the library.
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