The Bartlesville City Council is expected to further discuss recommendations made recently regarding proposed utility rate increases for Bartlesville water and waste-water customers.
On April 18 the council heard recommendations supporting implementation of Water Capital Investment Fees and water/waste-water rate increases staggered over the next five years for Bartlesville utility customers.
The council tentatively agreed to further discuss the issue during a regularly scheduled meeting on May 2, and to consider taking action on the issue during a meeting later in May.
The recommendations are based on results from a study conducted by Leidos Inc. in 2014. No action has been taken on the findings since the study was completed, but City staff members say additional revenue is needed to continue utility operations at the level currently provided.
The Leidos study focused on the continued funding of basic operations as well as additional potential scenarios involving future water projects, including the installation of a raw water line to Copan Lake, a water re-use system and construction of a new waste-water treatment plant.
But Administrative Director and Chief Financial Officer Mike Bailey told the council on Monday that staff recommendations do not include consideration of future infrastructure but rather the immediate needs of operating and maintaining the City’s existing water and waste-water systems.
Leidos’ recommendations include eliminating the current “declining rate scale” system, under which utility customers pay less for higher water use, and instead implement an “inclining rate scale,” under which customers would pay more for water used in excess of the minimum amount — a proposed 2,000 gallons per month. The incline system is recommended to encourage water conservation, but would not apply to industrial or large commercial customers in an effort to encourage development, Bailey said.
“The last thing we want to do is discourage development,” he told the council Monday.
Also recommended is the inclusion of a dedicated capital fee for both water and waste-water to cover “pay as you go” capital costs, a change from wholesale rates to a more standard structure, rate increases to be phased in over a five-year period and a septic surcharge adjustment for out of town haulers.
The average household uses approximately 6,000 gallons of water per month, averaged over the entire year, Bailey said. If adopted by the council as presented, the average household would see an increase of about $4.31 per month the first year, $1.65 the second year, $1.72 the third year, $1.79 the fourth year and $1.85 the fifth year for water and waste-water combined. Households with consumption exceeding the average would pay slightly more, as would properties with larger meters.
The City of Bartlesville has not had an increase in water operations since 2004. Waste-water rates were last increased two years ago.
The council is expected to further consider the proposed increases next month. If approved, the anticipated revenue will be considered in the 2016-2017 Fiscal Year budget, which must be approved in June and will become effective July 1.