Othello raises water rates

OTHELLO — The Othello City Council Monday evening unanimously approved an increase in the city’s water rates, attempting at the same time to rebalance the rate structure so that industrial customers pay a greater portion of the city’s water costs.

According to city Finance Officer Spencer Williams, average home rates would increase a little less than 5 percent, from about $55 to $58, while a typical industrial user would likely see a rate increase of roughly 16 percent.

“We’re always looking at balancing the needs of customers and the needs of the system,” Williams told the city council. “Industry uses about 53 percent of the city’s water but only pays about 31 percent of the rates.”

The new rates, which come into effect in January, 2017, and will last through 2020, will mean that industrial users in Othello will pay 40 percent of the city’s total water bill by 2019.

Several city council members noted that residential customers were effectively subsidizing the costs of water to Othello’s industrial users.

“We have users taking a majority of the water but not paying for it,” said Councilman John Lallas.

Williams agreed, noting that the city’s water rate structure “favors the industrial side” given that most firms employ locals and do a great deal for the city.

“Forty percent is a happy medium based on the benefits they offer to the community,” Williams said.

The city has a complex formula that charges a base fee — a meter fee — and then an additional amount for each unit of 100 cubic feet (748 gallons), with industrial customers paying 70 cents for the first 50,000 units and 77 cents for every unit after that.

The monthly base fee for residential customers will rise to $35 in 2017 and roughly $580 for industrial users in January.

Charles H. Featherstone can be reached via email at countygvt@columbiabasinherald.com.