Water Utility Budget reviewed--increase filed with PUC for 30% increase--approval revenue not included in 2007 budget

In the budget summary memorandum distributed on Thursday night at Evansville City Hall, the following was noted under the "Water Utility Budget."

"The City of Evansville has recently submitted an application with the Public Service Commission to increase water rates. The rate adjustment is necessary due to increases in operating expenses and costs of various capital projects undertaken in 2006. This review and approval process can be lengthy. It will likely be a minimum of three months before the City completes the public hearing process and receives a decision from the Public Services Commission. It is prudent not to include an increase in revenue in the Water Utility Budget at this time."

It was revealed at the meeting that the increase sought was 30%. The cause of the increase was listed in the memo as the "various capital projects undertaken in 2006." There were some utility impact fees that developers were to pay to offset the burden to the taxpayers for these costs. The question for discussion in the future is whether these fees are adequate to prevent further large increases in the near future. Some other Wisconsin communities have been hit with sizable increases. No spreadsheet was presented to citizens at the meeting for analysis.

From my understanding of the history of water rate increases, it has been almost 10 years since the last increase. The Observer did ask the question of why these increases are not done every three years or so, and the answer as I recall was that the expense and time involved in a Public Utility Filing for Rate Increase is considerable and thus is not done for small amounts. Stay tuned as the Observer follows this rate filing.

Click on the audioblogger icon to listen in as Jennifer goes over the rate increase: