Keiser council reviews three sewer-rate options to cover $550,000 loan

Mayor Rick Creecy told the Keiser City Council on Aug. 19 that the city’s new $550,000 sewer loan will require about $4,800 per month in debt service and that existing water and sewer revenue does not currently cover that payment. He presented three rate options for council review aimed at closing the shortfall.

Under Option 1, residential sewer rates would increase to $35 and metered rates would rise; officials estimated this option would represent an average 33% increase and generate about $6,800 in additional monthly revenue. Option 2 would set residential sewer rates at $30 and raise metered rates on higher users; staff said this would shift most households that use 3,000 gallons or less—described as a majority of retirees—to an average increase of about 24% while generating roughly $7,000 monthly. Option 3 also sets sewer rates at $30 but adjusts metered tiers differently to lower costs for very large users; staff estimated this would generate about $6,100 monthly.

Mayor Creecy emphasized these figures are estimates based on past usage and do not include projected revenue from late fees or disconnect fees. He also told the council rural and commercial customers would be raised by the same percentage as residential customers under each option, and that the meter deposit would likely need to rise from the current $125 to provide a source to cover unpaid final bills. Council materials noted the average current water bill is about $66 and that, with the proposed increases, the average bill would be around $94.

No vote on a rate change was recorded at the meeting; the presentation was placed on the record for council consideration as the city prepares its upcoming budget. Councilmembers asked questions and heard the financial implications before adjourning to other agenda items. The council did not adopt a specific option at this meeting; further action is expected during budget preparation or a future council meeting.