City faces $437000 water revenue crisis as rates debated

During a recent government meeting, officials discussed significant changes to water rates and the financial implications of water usage in the city. The conversation highlighted a troubling statistic: the city is currently losing approximately 55% of the water it pumps, equating to an estimated loss of $437,000 annually. This loss stems from the disparity between the total water pumped—around 300 million gallons—and the amount charged, which is only about 140 million gallons.

The urgency of addressing this issue was underscored by a proposal to implement new water rates for both inside and outside city limits. The current inside city rate for residents is set at $15 per 2,000 gallons, while commercial rates are $30, and industrial rates are $60. For those outside the city, the proposed rates are $22.50 for residents and $45 for commercial users, with industrial rates suggested at $90.

Council members expressed concern over the impact of these rate increases on local businesses, particularly small, family-owned establishments that are already struggling in the current economic climate. One council member voiced apprehension about raising rates for commercial users, emphasizing the need to support these businesses rather than impose additional financial burdens.

The discussion also touched on the historical context of water rates, referencing a 1986 council decision that established a tiered rate system for users outside city limits. The proposal aims to reinstate and adjust these rates to better reflect current usage and ensure the city can protect its water revenue.

As the meeting progressed, officials debated the separation of motions regarding the new meter installations and the proposed water rates, indicating a desire for clarity and thorough discussion before any decisions are made. The council is expected to continue deliberating these proposals in upcoming meetings, with the aim of addressing the city's water revenue challenges effectively.