Water, sewer rates to increase

As a result of a work session held by the Fort Scott City Commission Thursday night residents can anticipate an 10 percent increase in both their water and sewer rates.

The increase comes as a result of deficits caused by a 14 year period between 1992 and 2006 in which the city did not increase it's water rate. According to City of Fort Scott Director of Finance Susan Brown, the city is looking at a $293,801 deficit in the water fund in the adopted 2010 budget. Likewise the city is looking at a $269,141 deficit in the sewer fund in the adopted 2010 budget.

"For the last four years, we've been playing catch up," Brown said during the work session. "I wish I had some good new of some fashion, but it has just compounded over the years."

Fort Scott City Commissioner Jean Parker added, "It's pretty much a necessary thing to do."

The city's water and sewer revenue has also taken a hit due to wet summers and a decrease in users. Brown said a 15 percent increase in the water rate was put in place between 2008 and 2009, however the city only saw a two percent increase in revenue.

"The wet summers have really hurt us the last few years," Brown said.

The proposed 10 percent increase to the water fund would provide about $163, 340 in additional revenue, which would cut the deficit to about $130,460. Fort Scott City Manager Joe Turner said the deficit would be cut down more if the 2010 summer is a dry season which would cause usage number to rise.

"It's a guessing game on what the usage will be," Brown said.

To help keep the increase minimal, the commissioners have decided to use the funds in the Wastewater Stabilization Fund to offset the deficit in the water and sewer funds. The Wastewater Stabilization Fund currently has about $954,000 in it which will be cut to about $600,000 with the money going toward water and sewer projects.

Turner said if the Wastewater Stabilization Fund was left alone, then the commission would have to approve a 20 percent rate increase to cover the money lost.

The proposed 10 percent increase to the sewer fund will only generate about $86,650 in additional revenue which could cut the deficit to about $182,500. Turner said an increase of 28 percent would be needed to cover the money lost.

The new rate would show the following increases:

For a two to three person family residence

Water rate - $1.93 per month (based on 5,500 gallons)

Sewer rate - $1.83 per month (based on winter average)

For a five or more person family residence

Water rate - $3.22 per month (based on 8,200 gallons)

Sewer rate - $2.10 per month (based on winter average)

The commissioners will vote on the ordinances which will make the increases official at the Nov. 17 meeting of the Fort Scott City Commission.