By Kevin Boneske
Staff Writer
SUAMICO – Rate increases for sewer and water service in the village received the backing Monday, Dec. 17, by the Suamico village board.
Jessica Legois, village finance director, reported sewer rates in the village next year will include a 4.3 percent increase.
That will hike the metered sewer usage charge by 36 cents per 1,000 gallons to $8.73, which Legois said will ensure the increase in revenue will cover operational and maintenance expenses.
“The original rate increase that was presented to the (Public Works and Utilities Committee) was actually 6 percent, or 50 cents per 1,000 gallons,” Legois said. “The committee voted to recommend adoption of the utility budgets that were presented, subject to changes… that allowed us to lower the rate from that 6 percent to a 4.3 percent that’s before you today.”
Legois said the committee voted to have sewer cleaning contracted out at less cost to the village.
The overall increase being sought in total sales of water in Suamico next year is 15.75 percent.
Board members favored this in the village’s rate case application to the state Public Service Commission that would have to authorize a water rate increase in Suamico.
There hasn’t a water rate increase in the village since 2010.
If approved by the PSC as requested, the volume charges per 1,000 gallons of water would increase by 38 cents to $3.51.
Representatives from Schenck, the firm handling the village’s rate case study, appeared before the board to discuss the application for the increase.
They noted it wouldn’t likely take effect until the third quarter of 2019 after being approved by the PSC.
David Maccoux of Schenck noted that in 2019, which is considered a “test year” in the village’s application to the PSC, total projected revenue without the rate increase would be $895,266, compared to $1,030,473 with an increase.
“That makes sense to us primarily because a lot of your customer base – about 79 percent of your charges for services are residential-based,” Maccoux said. “Typically you don’t see very high, frequent fluctuations in the rate (of) each residential customer. Based on the growth in customers… overall, you’ve pretty much been at flat revenue the last couple of years.”
When the water rates were last increased in 2010, the report provided to the board noted total operating revenues came to $883,082 when operation and maintenance expenses were $410,010.
Projected operation and maintenance expenses for 2019 are $538,266.
“The growth in the operating expenses is primarily due to some maintenance costs that are being projected to be incurred in 2019,” Maccoux said.
Maccoux said the projected net operating income without an increase for 2019 is $30,557, compared to $165,764 with increasing water rates.
The volume charges per 1,000 gallons of water in Suamico with the increase would still be less than the average of water rates in the nearby municipalities of Ledgeview, Hobart, Lawrence and Pulaski.
However, Trustee Dan Roddan cautioned against comparing only water rates for utility charges.
“Generally, I love averages of adjoining communities,” Roddan said. “However, this is one area I struggle with that, because our sewer rates are so high… Once you factor in sewer costs, we’re probably the highest, or one of the highest (for sewer and water charges).”
Village Administrator Steve Kubacki said it’s time for an increase in water rates, given the additional maintenance needed for Suamico’s water utility.
“We have to make sure that we give the water utility the dollars and the maintenance and the operations, so that they can operate effectively and provide good quality water on a regular and reasonable basis,” Kubacki said.
Village President Laura Nelson noted Suamico over the last year to a year and a half has had to deal with various issues affecting water quality.
“We have systemic issues here that we need to address,” Nelson said. “When you don’t plan for these cost increases, they’re going to blindside you in a lump sum, and this is what we’re seeing.”
Trustee Michelle Eckert said the village’s water rate didn’t bother her as much as the sewer rate does.
Public Works Director Andy Smits said raising water rates is necessary to increase reliability and sustainability with the village’s water quality.
Smits said the infrastructure of the village’s water utility was better 10 years ago.
“We’re down a well right now,” said Smits, alluding to the effort to rehabilitate well No. 2, which has been out of operation because of high radium levels.
By getting the village’s wells operational, Kubacki said that would be spending money “much more prudently” than being part of the Central Brown County Water Authority or served by the Green Bay Water Utility.