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Mt. Pulaski , Illinois
January 19, 2015     Times
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January 19, 2015

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o tO O ol Council Wrestles With Increasing Water Rates By Mike Lakin The Mount Pulaski City Council was given a lot of information at their January 13 meeting. On the one hand the Council is faced with the cost of work on the city water tower that will require more revenue to meet the debt on the project. On the other hand the Council has to deal with how to raise the water rates to create the revenue to meet the debt on the project. During the meeting, Bud Mason (City's Water Rate Con- sultan0 presented documen- tation concerning the current water rates. He told the coun- cil what they already knew, that their water rates were not adequate to continuously meet fixed costs and total expenses. During the period of time that Bud was examining water usage and costs he told the Council the city has 850 customers. The amount of water sold to these customers and other customers was 34,812,000 gallons. Vari- able expenses are within a range of $3.67 per customer. Fixed costs are in the range of $10.94 per customer. Most residents that are customers of the city of Mount Pulaski use 3413 to 3860 gallons per month. There is one water customer that uses between 250,000 and 300,000 gallons per month. Based on the current variable rate being charged, that customer's bill is smaller in relation to the amount of water being pur- chased. Quite a few figures and thoughts were thrown at the Council to study. Bud said that if you use an average of 4000 gallons of water, you pay $22.69 per month. This is compared to what the city should be charg- ing of $25.62 per month. Bud said that the city should also look into purchasing auto- matic meter reading systems to replace the current manually read system. This would allow more accurate billing and would likely bring in more revenue to the water department. What Bud has suggested is eliminating the current billing system that the city has and replacing it with a rate system that eliminates discounts for large water purchasers. The current Water rate has a ser- vice charge of $3.25 for 0 to 999 gallons. Starting at 1000 gallons to 1999 gallons the rate is $5.52 per thousand gal- lons of water usage. Starting at 2000 gallons to 4999 gallons the rate is $4.64 per thousand gallons of water usage. Then, starting at 5000 gallons, the rate is $3.64 per thousand gal- lons of water usage. Following that rate are several lower step rates that give large water users discounts. What has been sug- gested is that the $3.64 rate serve as the lowest rate pos- sible. It was also suggested that this rate be increased. Starting with the understand- ing that the lowest rate possible needs to be adjusted it was first discussed raising the $3.64 to five dollars. The council was not interested in that. Continued on Page 6 We Treat Our Customers Like Neighbors... Because They Usually Are. Do You Know Who You Can Trust? It's a hard choice in today's financial Marketplace. With so many banks and other financial companies trying to get your business, it's hard to know who really has your best interest at heart. What's the solution? Placing your trust in A Real Community Bank@ solves that problem. Because only banks qualified to display this banking seal of approval are dedicated to hometown values and hometown commitment. As A Real Community Bank@, we're committed to the community where we live and work. Committed to making all our decisions locally and remaining focused on the needs of our customers and community. Come visit and tell us how we can serve you. )THE FARMERS 792-5211 130 S. Washington St. Mt Pulaski