Archive for Thursday, June 10, 2004

Coming rate hikes indicates fairness in tapping growth

June 10, 2004

The city of Eudora is preparing a rate increase to help pay for sewer improvements throughout the city. A recent rate study suggested increasing the monthly base charge approved in 1999 of $12 and $2 for each additional thousand gallons to $17.18 a mouth for the first 1,000 gallons and $2.86 for each addition thousand gallons.
Figures shared at a recent Council meeting indicated the proposed 43- to 45-percent rate increase would have an Eudora customer using 5,000 gallons a month paying $28.62. The same figures showed a De Soto customer would pay $16.10.
That doesn't tell the complete story. De Soto charges sewer hookups on new development, a so-called system-development fee, which varies depending on water meter sizes. Revenue raised from system-development fees is put into an account to help cover the costs of future expansion of sewer service. Operational and maintenance costs are paid for through usage rates.
The proposed Eudora rate increase will be used to help offset the cost of capacity increasing measures such as the east and middle interceptor upgrades needed to serve growth and other improvements needed to make the system more efficient.
System development fees share much of the same intent as the excise tax on roads the Eudora City Council explored earlier this year. The intent is that new development should pay the cost of new system expansion its creates.
The Council backed away from the excise tax, but the contemplated sewer rate increase indicates the fairness of the concept.

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