Going UP (water and garbage rates are soon to go up)

 

I hate to be the bearer of bad news but rates are going up – both water utility and garbage rates are on the rise and you should notice the difference as soon as your next water bill.

Effective October 1, our water utility rates went up. On average your monthly bill will be now approximately $7 higher for residential customers (commercial rates will go up as well but it may be higher depending on water use, etc). If you are a resident of the city you should have received a letter from the Public Service Commission of Wisconsin back in August informing you of the coming rate increase. It's not what I would call a quick-read, however, and rather on the confusing side as letters go but it tries to answer the “Why?” question.

I didn't read mine either

In case you glanced at it and tossed it out or misplaced it, here's the gist of what it says:

• A municipality can't just willy-nilly increase it's water rates because it wants to. There's a process to it. Earlier this year the Chetek Municipal Water Utility filed an application with the Public Service Commission of Wisconsin (PSCW) to increase water rates. Why? Well...(no pun intended) the cost of doing business (i.e., such as chemicals, wages and other operating expenses) has gone up since January 2010, the last time water rates increased. That's right, water rates have not gone up in 11 years.

• How much more do we need to “break even”? Just shy of $57K which will mean an approximate rate increase of 15 ½%.
  

• Now here's where it gets a little technical (at least for me) so I'll quote from the letter verbatim:

  

  • The Utility currently collects $38,250 from the City of Chetek for providing public fire protection (PFP) to the City. This cost is approximately 28 percent of the total PFP cost. Additionally, the Utility currently collects a total of $97,837 directly from customers on their utility bills. This is approximately 72 percent of the total PFP cost. The total PFP cost of $136,087 covers the additional storage, pumping, and distribution required to provide the high flows and pressures needed to fight fires. The City collects the funds for the current municipal PFP charge of $38,250 from property taxes and pays this charge to the water utility...

  • Did you catch all that? Not only do we need to increase our rate because of the increased cost of doing business but to ensure the expenses inferred in fire protection are adequately covered. You know, Mrs. O'Leary's cow and all that.

Per legend it was Mrs. O'Leary's cow
which kicked over a lantern that
started the Great Chicago fire of 1871

You will see the difference in your next water bill due out in early November.

I also have to tell you that your garbage rates will be going up as well come January 1. Chetek is the only municipality in Barron County that runs its own garbage service. We do so because it not only pays for itself but it allows us to hire two public works employees as well. By county ordinance, all our trash goes to the incinerator in Almena. The county sets the “tipping fee” (i.e., the expense of dumping our trash at the plant) which is currently $72/ton.

January 2018 was the last time customer rates increased (even though tipping fees have since gone up). Come the first of the year, residential customers should see an additional $1.50 on their monthly statement while commercial customers should expect an increase of approximately 7% per month as well.

So there you have it, Ben Franklin's proverb regarding the certainty of death and taxes come home to roost once again. But it's part of the cost of keeping our books balanced and our small community viable.

Ben said it first

While an extra $8.50/month ($7 water and $1.50 garbage) or approximately $100/year doesn't sound like a lot to ask from our residents for ongoing water and garbage services, the city is very much aware that 65% of our population is on Social Security. Even the slightest increase in cost for services puts more pressure on households already trying keep their heads above water. One of the reasons we are pursuing the current housing development on Knapp Street is to increase the number of taxable units in the city. More tax revenue means the love, as it were, gets spread even further. Of course, nothing is going to change on that end for at least another year or so but your council is busy seeking to grow our town and attract more residents to our community.

City Clerk Carmen Newman, Deputy City Clerk Cassandra Larson and Water Utility Clerk Mark Eby stand ready to answer your calls and field the questions this post may have raised for you. Please call 715-924-4838 Monday thru Friday between 8 am -4 pm.