Water rates increased in Othello

OTHELLO — More than 50 people crowded into the Othello City Council Chambers Monday night to hear the water rate increase decision.

"The city is proposing a five percent rate increase for the water utility," Finance Director Mike Bailey said. "We have a number of capital projects in the water fund coming up. We need to build capital."

Several city and Adams County citizens addressed the council with their concern about the rate increase. Citizens within city limits and within Water District No. 1 located in the county attended.

District Manager Eva White was concerned with how much profit would go to the city with the increase. She requested the council reconsider lowering the increase.

By law, the city can't make a profit, City Administrator Ehman Sheldon said.

The funds raised go into a reserve account to fund projects benefiting water customers, he said. Among the to-do list is a reservoir reconditioning and drilling a well costing about $1.3 million.

"This is going to create an unfair burden to our low income people," White said.

She said some residents are on fixed incomes and might find the increase to be too much to handle.

Citizen Alex Martinez asked why people living outside the city limits were being charged more than people within city limits for water.

Several years ago the district requested to use city water, Bailey said. A contract was signed between the district and the city stating the district agreed to pay 50 percent more than citizens within city limits to use city water, he said.

"They have the power to do that," City Attorney Jim Whitaker said about the surcharge. "The city does not have to provide any justification."

The council provided the justification as the need to fund future projects.

"We want to be fair and equitable here," Mayor Shannon McKay said.

He said although Whitaker's explanation sounded "brutal" the council hoped to find a "middle ground" with their citizens.

At previous meetings council discussed raising water rates more than eight percent each year for three years in a row. Council discussed the increase and decided it was too high.

Ultimately council approved the five percent increase for 2007 with the option to discuss an increase for 2008. The five percent increase for citizens within the water district is pending. The district must approve the increase at a meeting to be held at a later date. If the district does not approve the increase, the city will enter mitigation with the district, Bailey said.

For citizens living within city limits the rate increased from .39 cents per unit to .41 cents per unit for the first 266 units. One unit equals 100 cubic feet of water. For up to 666 units, rates increase from .46 cents per unit to .48 cents per unit. For additional units it increased from .52 cents per unit to .55 cents per unit.

For citizens within the district they may see an increase from .59 cents per unit to .61 cents per unit for the first 266 units. For up to 666 units, rates increase from .68 cents per unit to .72 cents per unit. For additional units it increases from .78 cents per unit to .82 cents per unit.