Florence City Council gives OK on first reading of bill that would increase water, sewer rates

FLORENCE -- Florence City Council approved on Monday first reading of an ordinance that will increase water and sewer rates for city customers over the next 10 years.

The proposed overall increase for water and sewer services for Fiscal Year 2011, which begins July 1, is about 4.7 percent. Each year after for the next 10 years, rates would increase by about 2.5 percent per year.

City officials said the rate increase is needed to cope with inflation and provide for the debt service on a new wastewater treatment plant.

The proposed increase basically equates to a cost-of-living adjustment, Daryll Parker of Utility Advisors’ Network Inc. explained to City Council members during a special work session in January. The proposed changes are closely in line with the water and sewer fee structure the city has had in place for the past 10 years.

“You’re not really changing the overall rate structure,” Parker said. “You’re just tweaking it a bit.”

Utility Advisors’ Network, a firm that specializes in rate and financial consulting services to public utility systems, was retained by City Council to conduct a water and wastewater study. Such studies are conducted every 10 years to help Council set an appropriate rate structure for the next decade.

“Every 10 years, Council votes on an ordinance to set rates for the city for the next 10 years,” City Manager David Williams said at that time. “This time, the rates must be set to provide for the debt service on bonds for the city’s new wastewater treatment plant and operating funds for the system.”

Although the structure is set for 10 years, Council can revisit the fee structure and amend the rates if need arises in the future.

In its study and proposal, Parker said his company took into consideration common industry standards, the impact on customers in the current economic situation, comparability with neighboring utilities and the potential for future economic development.

The proposed rate structure would increment the monthly availability charge by meter size in accordance with American Waterworks Association meter equivalency factors; set the existing monthly customer charge at an equal rate for customers inside and outside of the city; and lower the outside-of-the-city difference in rate to about 1.6 times the inside-the-city rate.

A fee structure, whether Council proceeds with the proposal or adopts an amended scale, needs to be in place before the city closes on the bonds for the new wastewater treatment plant in May, Williams said.

City Council will vote on final reading of the ordinance during next month’s regularly scheduled meeting.

In other business, Council deferred second reading of an ordinance that would establish a daytime curfew for juveniles 6 to 16 years old between 8:30 a.m. and 2:30 p.m. on any school day. The matter is slated to be addressed during council’s next meeting in March. Council members agreed Monday to allow members of the public to voice their opinions on the matter during a hearing to be held before the meeting next month.