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Greenwood board debates sewer-usage pricing and fairness ahead of metered billing change
Summary
Board members questioned the city's volume-pricing structure, arguing a steep rate drop after 40,000 gallons could shift costs to smaller users; staff was asked to research alternative rate structures and hookup fees and return with recommendations.
At a Greenwood board meeting, members spent the most substantial portion of the agenda debating whether the city's sewer-usage charges are equitable and how they should change as the city moves from a connection-based system to metered billing.
Staff summarized the current structure included in the meeting packet, saying the city charges $5.20 per 1,000 gallons of wastewater up to 40,000 gallons and that the rate drops for usage above that threshold. "We charge $5.20 per thousand gallons of wastewater ... up to 40,000 gallons," the staff member said, adding the packet shows a reduced rate beyond 40,000 gallons. The staff member asked whether the board wanted staff to research restructuring options and report back.
Board members raised fairness concerns. The chair warned that "some of the little guys may be subsidizing some of the big guys" once the city begins metered billing, arguing the current tiered structure could disadvantage households that use less wastewater. Another member said it "didn't make sense" that customers would receive a bulk rate after 40,000 gallons, because the city still bears treatment costs for all wastewater.
Members also discussed the methodology for measuring sewer volume. One member noted the city currently relies on a three-month winter average from the water department to set usage-based charges and cautioned that seasonal patterns could misrepresent typical sewer generation. "If you look at the water usage from the water department...that's December, January, and February to get a 3-month average," the member said, urging consideration of more frequent recalculations to avoid cross-subsidies.
Commercial fairness and hookup charges were raised as separate but related issues. A board member said commercial establishments currently pay about the same flat connection fee as residents and suggested staff examine differentiated commercial hookup charges so businesses that generate larger wastewater volumes pay a fairer share.
The board directed staff to research how nearby cities structure sewer rates (including whether they use curves or flat rates), to examine hookup charges and measurement approaches, and to bring back options. No ordinance or rate change was adopted at the meeting; the item remained a discussion directed to staff.
What happens next: staff will return with comparative research and recommended options for rate structure, measurement period and hookup charges for the board to consider before any formal vote.
