It will be Friday before Trenton Municipal Utilities customers know whether or not a proposed sewer rate increase will go into effect next March.
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That is because one of the five councilman attending this morning’s Trenton City Council meeting voted against an ordinance that would have repealed a portion of a current ordinance and enacted a new section that would have the city review the user charge system on at least an annual basis and revise charges as necessary to assure the utility can pay its bond obligations.
Fourth Ward Councilman Jim Bush cast the lone dissenting vote on the ordinance, which needed to be approved in order for the council to then vote on another ordinance that would have established the new user charges that would generate funds to pay off bonds for the city’s wastewater plant improvements. Five votes are needed for an ordinance to pass and only Bush, David Trickel, Kenneth Ewing, Steve Perry and Dr. Nick McHargue were present for this morning’s special meeting. Terry Toms, Ed Holt and Chuck Elliott were absent.
Bush questioned the rate increase in regard to those on fixed incomes being able to pay the rate as well as the city’s two largest manufacturers, ConAgra and Modine, facing substantial increases in their sewer charges. TMU Director Chad Davis said that the utility has worked closely with ConAgra over the last two years in regard to the sewer improvement project, noting that both ConAgra and Modine were kept informed about the project. He noted that provisions are made in the sewer charge rate structure for when ConAgra meets or does not meet its pretreatment limits. As for Modine, Davis said the company has been removed from the utility’s pretreatment list for some time and noted that the charges would not have as much of an effect on Modine as it might have when Modine was a larger user.
Davis also told the council that the utility put in many hours in determining costs for construction, operation and maintenance of the sewer improvement project and the amount of money it would take to cover those costs. He said that information was used in trying to keep increases at a minimum, adding that the first rate increase would not go into effect until March 1, 2008. A second increase is planned for Jan. 1, 2009.
“We wanted to do this now in an effort to give customers plenty of time to plan for the increase,” Davis said. “We tried to time the increases with the rate of debt repayment.”
The utility anticipates payments on the bonds to be $130,000 for the first two years, increasing to around $440,000 for the next 18 years. Davis estimated that the average residential user will see an increase of around $2 per month in the first phase, jumping another $12 in the second phase. It was noted that in the first phase, rates for residential customers will remain virtually the same, however, instead of paying a minimum rate charge for the first 200 cubic feet of water used, customers will pay for the actual amount of water used at 83 cents per 100/cubic feet.
Dr. McHargue expressed some concerns about the amount of the project cost that was being paid for by ConAgra through its increase. Dr. McHargue said that ConAgra uses approximately 70 percent of the sewer system and would be paying about 55 percent of the project cost under the new rate. He feels the company should pay closer to 60 percent.
The council passed three other ordinances, repealing other portions of its user charge ordinance, all of which were approved on a 5-0 vote.
The council adjourned its meeting until 7:30 a.m. on Friday, at which time it is hoped that other council members absent today can be present.
In other business, the council swore in two Trenton High School students who will serve as youth council members through the Hometown Competitiveness program. The two include Kevin Ewing, who will serve a two-year term, and Megan Perry, who will serve a one-year term. The students will have no official votes, however, they will have input on issues and will participate in council discussions.
Mayor Cathie Smith gave special recognition to Jeanie Whitney, whom she said spent a lot of time working with and promoting the youth component of the HTC program, which resulted in the youth council process.