Oakland approves sewer-rate increase, small water-rate reduction; residents warn of sharp bills
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Summary
Ordinance 25-07, approved 4-0, reduces water charges slightly while increasing sewer rates to cover wastewater plant debt and operating shortfalls. Residents warned the change could sharply raise bills for higher-usage households.
The Oakland Board of Mayor and Aldermen approved ordinance 25-07 to adjust the town's water and sewer rates, voting 4-0 after a public hearing in which residents said the changes could produce sharp household bill increases.
Under the approved changes discussed at the hearing, the sewer schedule cited by residents included a charge of $28.39 for the first 1,000 gallons and $8.11 for each additional 1,000 gallons; town staff also reported a modest reduction in water charges that will lower water bills by roughly $2 for most customers. The changes reflected in ordinance 25-07 were presented by town staff as necessary to cover the wastewater fund's deficit, long-term debt service and to add depreciation funding. Town staff said $350,000 of additional depreciation was added to the sewer fund in the coming budget year and that next year that figure could rise to $700,000.
Several residents said published examples show dramatic bill increases under the proposed rates. Gary Borth presented a calculation using his household usage and said his six-month sewer bill would rise from $150 last year to $457 under the proposed rates, an increase of nearly $300. Other residents said increases of 97% to more than 300% appeared for some months when the town's summer sewer adjustment was removed.
Town Manager Ellis and other officials explained why the change was necessary. Ellis described the water and wastewater funds as enterprise funds that must be self-sustaining and warned that a sustained deficit could prompt the state comptroller to set rates for the town. He also told the board the town had financed a new wastewater plant with variable-rate debt and that interest costs were substantial. "If we didn't have to spend all this money on interest, maybe we wouldn't have to raise taxes as much," a public commenter said; Ellis said the loan was structured with a five-year term and staff would seek refinancing when the term ends.
Staff noted options residents can use to reduce bills: an irrigation meter (stated at $500) that supplies water not charged to sewer, and the town's existing policy permitting a summer adjustment in certain years had been discussed and will be revisited by the board. Aldermen also flagged the town's limited ability to apply tap fees to repay loan principal because of state statute restrictions.
After the public hearing, Alderman Hummel moved to approve ordinance 25-07; the vice mayor seconded. The roll call recorded Alderman Campbell, Alderman Austin, Alderman Hummel and Vice Mayor Cates voting "yes." The motion carried 4-0.
Officials emphasized the necessity of the action to keep the utilities solvent and noted that staff will continue to explore contracting options for sanitation and other cost-saving measures.
