Published: October 08, 2008 12:31 pm         

Move unopposed

Few Waurika citizens join forum; council votes to hike water, sewer bills

WAURIKA — If turnout for an open forum on raising water and sewer rates was an indication of public sentiment, Waurika city officials could read it two ways: 1. Residents approved of the rate hikes; or, 2. residents accepted that increases were inevitable.

Fewer than a dozen citizens attended a regular meeting of the Waurika city commission and Waurika Public Works Authority Monday night, during which an agenda item called for an open forum to discuss a proposed increases in water and sewer rates.

First presented at a meeting in September, the proposed rate hikes made no change in the minimum base rates already paid by Waurika utility customers. The plan did, however, map out a three-year, incremental increase in rates Waurika consumers pay for water and sewer use over the minimum base.

The plan also called for an increase in the minimum volume of sewer water, lifting that from a base of 1,000 gallons to 2,000. City officials felt lifting the volume base would result in lower annual sewer rates for citizens with low incomes or those on fixed incomes.

In addition, the proposed plan made in September would also incrementally increase rates on bulk water sale to the City of Ryan and Rural Water District No. 1, as well as increasing rates on bulk commercial water sales.

During Monday’s public forum, no one spoke in opposition to the proposed changes, some of which have already appeared in the News-Democrat (See story in Oct. 1 edition), and a final schedule of which will appear in the Oct. 15 edition of the WND.

Stressing the need for rate increases, Commissioner Scott Cathey referred to a letter the city received from the U.S. Department of Agriculture’s Rural Development Area Office in August, and to a letter the city received from the USDA in January 2005.

In both letters, the USDA expressed concern that the city was not meeting the 1.25 debt service coverage. The debt service coverage was required by bond indentures the city assumed when it used Rural Development loans totaling nearly $2 million to fund construction of the Waurika Water Treatment Facility and a new sewer lagoon in 2001.

The USDA used the city’s fiscal year 2007 audit and it’s proposed budget for fiscal year 2008-09 in its evaluation. Cathey said those figures “show we’re $71,311 short of meeting the terms of the note that was signed” in 2001.

Cathey also noted the city was so far behind in meeting its 1.25 debt service coverage “that there are actually moneys from the 1970s that have rolled forward twice” included in the current shortfall.

Why is it important for the city to meet its debt service coverage? “If we don’t approve a rate increase plan the USDA likes,” Vice Mayor Jim Bernard said, “they can come in and increase rates even more than we’re talking about, or they can call our note.”

Cathey, who was instrumental in creating the rate change plan, said there was no guarantee the USDA would accept the city’s proposal. However, he said, “Even though this doesn’t get us all the way there, it allows us to make progress, which is what (the USDA) wants to see.”

“Over three years, we’ll see a $53,000 increase in our net [if the proposed increases are approved]. If we can make improvements in our operating expenses and sell more water, we can, hopefully, make up the difference,” Cathey added.

“This may not be enough [to satisfy the USDA], but we have to start somewhere. We don’t want to over-burden our citizens and businesses, and we’re not trying to get rich.”

Among comments from citizens, Terry Doyle, a retiree who keeps water usage below the minimum, said, “I was pleased that there will be no increase for my rates in the proposed plan.”

“If (the city) can break even with those rates,” said Bill Everett, “then that’s progress. You can’t continue losing money on what should be making you money.”

Having received no public objection to the proposed rate increases, when the public forum ended, the city commissioners took the following actions, which were later endorsed by the WPWA:

n They voted unanimously to approve water and sewer rate changes in Waurika, in bulk water sale to the City of Ryan and Rural Water District No. 1, and in bulk commercial water sale.

n They voted unanimously to approve changes in the utility collection policy. (See accompanying story.)

     

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