New Water Rate

This resolution is based on the recently completed study by Baxter/Woodman regarding increasing water rates. The study was required as part of the bond issue. The engineering assessment included a visual inspection of pipes and the tank, testing paint samples, and review of the SCADA. With this information in hand Strand Engineering and Baxter/Woodman Engineering advised a repair program and an estimate of probable cost.
The report indicates that the utility needed to adjust its rate approximately three (3.0%) percent annually for the next three years to maintain adequate revenues to meet debt requirements. The actual rate increase prepared by Baxter/Woodman for this year is 3.8%. We are filing under Wis. Stat. § 196.193, a Simplified Rate Case (SRC) process that does not require a hearing. The Simplified Rate Case (SRC) process is a way that the PSC encourages small annual increases rather than periodical large increases.
The SRC rate increase is tentatively scheduled as follows:
Meeting with staff: January 20, 2010
Information for Public Works Board meeting: February 4, 2010
Public Works Board Meeting: February 9, 2010
Council Meeting: February 16, 2010
Notice of Rate increase published in the Lake Mills Leader: February 18, 2010
PSC Application Submitted: After public notice but before February 19, 2010 (must be 45 days before Rate Increase takes effect and before March 1 to increase based on 2008 year end PSC report)
Rate Increase takes effect: April 5, 2010 (First Day of new billing cycle to avoid pro-rated billing.)
The new date must be more than a year from the last increase. So after April 1, 2010. This rate increase is scheduled for April 5, 2010.
To avoid prorating, the first meter reading for the month must not be before April 5, 2010. This may be possible because of the Easter Holiday Weekend (April 2-4).
The volume rate is adjusted to $2.16 per 1000 gallons from $2.08 per 1000 gallons. The average quarterly bill changes to approximately $54.96 from $52.92. We remain in the lower 20 to 40 percentile for water utilities rates in the state.