The Newton Board of Aldermen will be voting in June to approve a new water ordinance that includes a 23 percent increase of the water rate effective July 1.
At a regular meeting May 15, the board asked City Attorneys Robert Logan and Brian Mayo to present a new water ordinance at the next board meeting at 5:30 p.m. June 5 that includes a $2.55 increase on the city’s minimum water bill. Currently, the city’s minimum water rate is $11 and $11 for sewer.
The total minimum bill for Newton water customers, including garbage collection fees and other fees, is $46.20. With the new water rate increase, the minimum water bill will be $48.75.
The ordinance will also include another automatic $2.55 increase on July 1, 2019, which will increase the total bill to $51.30 with $16.10 of it being the new water rates.
Mayor Murray Weems said the new water rate puts the city in line with what it should be charging to cover increasing costs and have an adequate reserve to cover any major costs.
At the May 1 meeting, Alderman Bob Bridges said the city has about $211,000 less in its reserve than it should to be in compliance with state recommendations for running municipal water service. According to the guidelines, the city should have about 10 percent more in reserve than it takes in
“If we don’t have enough money in reserve, it could jeopardize future grants the city could receive to help improve our city’s water system,” Bridges said. “If one of our wells goes out, the city might not receive grants like we just received to build a new well.”
In addition to Alderwoman Linda Wash, Alderman Eric McCalphia said he agreed to raise the water rates, but he also wants to see results from the water rate increase.
“I’m OK with it to get us into compliance, but I want to see us getting more grants,” McCalphia said.
Alderman Michael Hillie said at a political forum at the last election that he wouldn’t support raising water rates, and he stood by that promise by being the only “nay” vote on the issue.
“I’m not in support of it,” Hillie said. “I’m not going to go back on that promise.”
Citing a recent water rate study, Weems and Bridges said the city needed to raise rates by $4.70 on just the water rates to bring the city into compliance. However, McCalphia and Wash felt it would be better to phase the rate increase over two years. The city’s sewer rate of $11 was unaffected by the rate increase.
Weems asked the board to consider adding 20 cents to the increase for both 2018 and 2019 so that it would bring next year’s rate up to what it should be with an increase this year and an annual 8 percent increase next year, which would account for the increased costs of maintaining the city’s water system.
The board will consider final approval at the meeting June 5.
