City passes ordinance to bump sewer rates 13% over two years

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BY CHUCK VANDENBERG
PCC EDITOR

FORT MADISON - City Councilman Bob Morawitz thinks a 21% hike in the city's basic sewer rate and volume charges is too much for some city residents to handle.

But at Tuesday night's regular Fort Madison City Council meeting that's what city officials approved by a 4-2 vote, after voting the same increase down two weeks ago.

The rate increase was an altered version of a proposed increase introduced two weeks ago that would have bumped the basic service charge from $21 a month to $25.50 for two years for all users - residential, small business and industrial, an increase of 21.4%. The increase will also move the charge per 1,000 gallons from the current rate of $5.55 to $5.75 this year and $5.90 in 2020.

Effective July 1 of year beginning in 2021, the basic service charge will get a 2% bump from the prior year with a rate review every two years.

The original proposal bumped the service charge only for monitored, or industrial customers, but had increases in basic and volume charges for residential and small businesses. The proposal approved will now include industrial rates as well.

The proposed increase ordinance was put back on the agenda for Tuesday to be reconsidered. Councilman Mark Lair made a motion to reconsider the ordinance and got a second from Chris Greenwald. Then Greenwald and Mohrfeld moved to approved the ordinance and Morawitz immediately voted to amend the ordinance to include a more gradual 6% increase in the basic and volume charges for the first two years, 2019 and 2020, and then a 3% overall indefinite annual increase.

MORAWITZ

He said by the year 2026, the city would still have generated the same dollar rate as Driscoll was proposing.

Driscoll said that would get him what he needed, but it's more than he originally asked for, which launched a 30-minute discussion on the math of Morawitz' proposal.

Mohrfeld recommended a 3% across the board increase for five years.

"Roll it up 3% and after six years it gets him close and it softens the annual blow," Mohrfeld said.

Morawitz said that move wouldn't have the impact the city needs now to deal with the deficit.

"We need the money now and I don't think the additional 3% creating an additional $1.26 increase is going to get your there."

Varley said the city was trying to front load the increase because they are currently in a deficit position.

"We're trying to put it heavy toward the front end because we are climbing out of a current deficit. so we're trying to bring in a little more up front and then drop it off because w'ere running about a $240,000 to 250,000 deficit right now with the sewer plant bond and other projects we're doing," Varley said.

Morawitz said the proposed rate is too much for some people in town to absorb.

"I just think 21% is a big shock for people who are on fixed incomes or less and I've got a lot of those in my district that I don't want to see get hurt by this," Morawitz said.

"I think a gradual increase is better for them otherwise we end up with people having their property taken because they can't pay their bills."

Morawitz was referencing Pam Burford, who addressed the council at hte start of the meeting regarding her house being sold on a tax lien due to back water services not being paid, after she had requested having the service canceled.

Driscoll said the ultimate goal was to deal with the deficit by increasing both the base and volume charges to help generate revenue.

Councilman Chad Cangas said more work needed to be done on the ordinance.

"I didn't do well in math in school and I don't want to make a decision on stuff I don't understand. My answer is no and if it requires this much scrutiny we need to go back and figure out what we need to do to get it right and have them bring us a different proposal," Cangas said.

After additional discussion, Cangas called the question to end the debate which was approved and then forced a vote on the amendment which failed, 3-3.

Cangas then made a motion to keep the rates as proposed by Driscoll, but include industrial customers, in the volume rate change as well, and that motion was approved 4-2 with Mark Lair being the last vote at 3-2.

Driscoll said the city wouldn't take too much of a black eye for raising the industrial rates as well. The ordinance would boost all volume charges 3.6% this year and a 2.6% in 2020. The ordinance doesn't address any additional volume increases after 2020, but does allow the city to review charges and rates every two years to ensure that the system generates adequate revenues.

In other action, the council:

• voted to spend up to $53,000 repairing the lights at the intersection of 53rd Street and Avenue O, by FMCH to revert back to a complete controlled intersection over the flashing red light controls.

• appointed Stephanie Knoch to the city Civil Service Commission to fill a term expiring March 31, 2021.


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