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City approves new sewer rates |
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Wednesday, 10 September 2008 |
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Page 1 of 2 By Buck Traxler, I-O Editor
 Al Farnstrom - Conrad City Judge
The increase was deemed necessary to fund the debt service on bonds the city will get to pay for improvements to the sewer system as well as cover operation and maintenance costs. The improvements will bring the system into compliance with the DEQ and mandated federal requirements.
Harry Whalen, who was in Conrad in July to brief the council on the proposed new rate system, was again on hand to answer questions from the public.
Whalen is a Circuit Rider for the Montana Rural Water Systems, Inc. He has worked for 20 years, figuring out funding scenarios for rural water projects.
He spoke in terms of EDU, Equivalent Drilling Unit(s), which refers to the cost according to the pipe size of the water user.
Whalen commented, “This is a commitment to the future of the infrastructure of your city.”
You may recall that at the present, Conrad has 1,204 water connections; 1,138 on ¾-inch, 35 on 1-inch, 14 on 1-1/2 inch, 13 on 2-inch, 2 on 3-inch and 2 on 4-inch pipes.
Those customers on the ¾-inch line will see their base rate charge go from $15.57 to $22.50.
Blue Sky Villa is served by 4-inch lines and will take a huge hit, seeing their present rate charge go from $47.50 to $421.
Those on the 3-inch line will see their rates go from $33.14 to $210, customers on the 2-inch lines will see their rates jump from $26.74 to $136, the 1-1/2 inch line users will have an increase from $20.36 to $88 and those with a 1-inch line will go from $17.17 to $31.50.
For those individuals who are connected to the water line but not using any water or who have turned off their water, will be charged $22.50 per month.
The city anticipates issuing a little over $2.9 million in sewer system revenue bonds. They have applied for over $1.220 million in grants to help reduce the cost of the project.
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