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Oakland approves water rate decrease, sewer rate increase to cover treatment debt
Summary
Board passed Ordinance 2507: the town will reduce the water base fee by $2 (base inside city limits $15.47) and raise sewer rates (residential minimum $28.39) to cover wastewater treatment plant debt; changes take effect July 1 if adopted.
The Oakland Board of Aldermen passed Ordinance 2507 on first reading, approving a $2 reduction in the water base fee for the 2,500-gallon base and raising sewer rates to cover debt from recent wastewater plant upgrades.
Town Manager Mister Ellis said the town incurred substantial debt to update its wastewater treatment plant and explained state law requires sewer revenues to pay associated debt; those costs cannot be paid from property or sales taxes. He said the sewer revenue shortfall is borne by approximately 5,000 sewer customers.
The ordinance sets the in-city base water bill to $15.47 (a $2 decrease on the 2,500-gallon base) and leaves other water tiers unchanged. For residential sewer service the ordinance raises the minimum bill to $28.39 for the first 1,000 gallons and charges $8.11 for each additional 1,000 gallons. The commercial rate was set at $43 per 1,000 gallons with $12.17 per additional 1,000 gallons.
Ellis said the decrease in the water base and increase in sewer charges are scheduled to take effect July 1; the billing cycle means customers will receive one month of the prior adjustment in June. The town cited a utility rate study performed by MTAS (Municipal Technical Advisory Service) and staff in proposing the changes.
Aldermen asked about irrigation meters that can bill water without sewer charges; staff said an irrigation meter option is available and should be advertised to residents who irrigate extensively.
A motion to pass the ordinance carried on a voice vote.
