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City considers way to lessen burden of sewer rate increase
November 13, 2007 - 12:04pm — Kristin Holtz
In a family, what’s mine is often yours. And what’s yours is often mine. Litchfield City Administrator Bruce Miller posed a similar concept of sharing between the city’s public utility funds to help ease the burden of a possible big sewer rate increase for 2008. Miller suggested a short-term utility rate stabilization concept for City Council members to think about last week as they deal with a projected $120,000 shortage in the city’s sewer fund. Miller said the closing of Innovex is to blame for the anticipated shortage. The company ran an annual sewage bill of $120,000 to $140,000, but because it closed in March, the city will need an across-the-board rate increase of 5 percent to cover those missing dollars. Miller said the obvious option would be to raise sewer rates 5 percent in addition to the planned increase of 4.4 percent set back in 2001. That would bring the 2008 rates up nearly 10 percent just to break even next year. Therefore, Miller offered a second option that could soften the blow to utility users. He suggested implementing smaller rate increases each of the next few years and transferring the remaining dollars from the city’s electric fund, which looks strong for 2008. The stabilization plan works by splitting the dollars needed to cover the anticipated $120,000 Innovex deficit between rate increases and transfers, Miller explained. For example, if the city were to spread the plan over three years, it could raise sewer rates around 2 percent for 2008 for an additional $40,000 and transfer the remaining $80,000 from electric to sewer. In 2009, the city could bump up rates another 2 percent for a total of $80,000 and then transfer only $40,000. By 2010, the city could bump the rate up a little more and not have to transfer any dollars. “It’s just a way to soften the rate increases that are needed,” Miller said. Read more in the Nov. 8 Independent Review.
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How much money do they need?...
Back to page topHow much money do they need? "To cover those missing dollars"? If you ask me, no matter how they "soften the blow to our wallets", thats a big increase. So lets just steal from the poor because the city doesn't have the extra million dollars in their pockets to play with. Maybe we should go back to the "out house days" and sit back and watch them struggle living paycheck to paycheck and see how they like it.
sure why not stick it to the...
Back to page topsure why not stick it to the poor some more****
Wait a minute....I am...
Back to page topWait a minute....I am confused....if Innovex paid $120,000 a year, that means they "produced" $120,000 worth of sewage. Since the plant closed, they are not "contributing" that same amount, which should have lessened the "load" at the treatment plant, therefore lowering the overall costs to the city.
And what about Walmarts new "contribution" to the city sewage?? Arent they paying and probably making up for the innovex loss??
Maybe poor money management is the real problem. Too easy to point the finger at a company that no longer exists and therefore an easy excuse to be sucked into.
Citizen I know it can be...
Back to page topCitizen
I know it can be confusing. The city has costs weither the plants, water or sewage treatment, have any use at all. It is called overhead. Meaning the plants still need to be paid for, maintained, and staffed. The sewage plant is actully working at capacity due to very good customers who employ many people. The water plant is also working. This plant was sized to accomodate a large water user (Innovex). When a large user, who paid higher rates than a homeowner, leaves, the operational costs are still there. This makes a burden on every customer that must be made up. The city was trying to soften the blow to the average homeowner. They will not make any money and will actually lose some by doing that. I beleive that most of the council does care for it's citizens. Some even feel the same pain with the increases that have been happening. They are not all "rich". Look to some of our neighbors who have water and sewage bills that ammount to $200 per month. Because Litchfield has good industrys to help pay the costs the homeowner actaully gets a very good deal. If you need more explinations you can call any city council member. I have found they are usually willing to talk to the pople they represent as long as you are polite.
I know and understand that...
Back to page topI know and understand that there is still an overhead for the city that has to be covered. I am just trying to figure out why there is a $120,000 loss when the city has gained Walmart, the new DOT building, the new Tire shop and everything else that has sprung up on the east end of town. I would think there would be some offset with the new businesses.
My councilman is great, he has been to my door taking a poll in the past to see how the citizens in his ward felt about a topic. He was doing a great job!
Citizen Innovex was a large...
Back to page topCitizen
Innovex was a large can I say HUGE water user. They had multiple process that required a lot of water. Wal-Mart just has bathrooms and a small kitchen, Tire shop just bathrooms. To put this in perspective we would have needed over (maybe alot over) 1000 bathrooms and 300 kitchens to equally what they used. They did processes similar to HTI which uses the equivalent of Lake Minnebell each year. Although Innovex was not quite that big,they may have been half the size. I do not know how much is used by Tech Etch but they only occupy half of the space.
I am glad your council person is doing a good job. They can always use a kind word.
It still goes back to what I...
Back to page topIt still goes back to what I commented on earlier. Innovex is gone, therefore they are not demanding, using, and wasting all of that water. Therefore there is less demand on the system that supplies the water (wells) and the treatment of it (treatment plant).
Bottom line, I think there is more to this than meets the eye.
Ok stupid question coming...
Back to page topOk stupid question coming here to you all........
why do you all say citizen and not the person's name? why not just say well litriches or cml or Lisa or jolly...... why citizen, makes it seems like we are these ignorant hillbillys who need adressing. Not starting anything just my opinion is all.
Lisa, I also do not like...
Back to page topLisa, I also do not like being called citizen. I have only noticed one person addressing people that way and I feel like she is talking down to me. Almost as if she is a queen, the mayor, a council member or something. I know Litchfields mayor and he is much too respectful not to address anyone other than by their name.
Citizen Sorry but the word...
Back to page topCitizen
Sorry but the word Citizen just comes up when I login. I have no clue why it does this. It is put on there by the Independant Review. I am not calling anyone Citizen. Sorry if it made anyone feel bad, I did not mean to do that. I will see if they can take that off.
So Brent if you read these can you get rid of that word?
cml3165 The problem lies...
Back to page topcml3165
The problem lies with your computer, not with the site. If you're having problems, please e-mail the specific issue and I can try to help you "Citizen" is not appearing in your posts.
Brent Schacherer, editor
Citizen When I login a...
Back to page topCitizen
When I login a Comment* box come up. In that box at the top is the word Citizen. Just like it is in this box. Not sure why you are not seeing it.
cml3165 that is what shows...
Back to page topcml3165
that is what shows up as your name.
you probably have to go into...
Back to page topyou probably have to go into your user profile and double check everything, especially your username.
The other option is to simply delete the word citizen from the comment box.
cml3165, What is happening...
Back to page topcml3165, What is happening to you is that you have set your signature to be Citizen. This will appear at the top of the comment box. All you have to do is start typing before that word and then it will become your signature. Otherwise you can go into your user profile and erase the signature that you ad set up at some point. Sorry, I am a little late getting to this thread, but better late than never, right?
Thank you for posting and being active on this site, we all appreciate your thoughts and comments.
Scott Hornemann is the Internet Advertising Representative for independentreview.net, you can reach him at hornemann@redwingpublishing.com