John Day water and sewer rates inch higher

Published 12:13 pm Tuesday, January 16, 2018

On its first meeting of the new year, the John Day City Council approved $1 monthly rate increases for both water and sewer service Jan. 9. Mayor Ron Lundbom and Councilor Donn Willey were absent.

The minimum monthly water and sewer bill for a John Day residence will increase from $81 to $83 beginning Jan. 1. This includes the base rates for water and sewer along with the Community Development Investment Fund fee, which will remain at $6.

According to a 2017 water rates survey conducted by the League of Oregon Cities, the bill for 5,000 gallons of water delivered to a 3/4-inch service line ranged from $14.51 in Glendale to $108.80 in Klamath Falls. John Day was not included in the survey results.

John Day’s water and sewer rates have been inching upwards for several years now, including $1 each in December 2015 and again in December 2016. The council in the past discussed the need to raise the rates in order to qualify for state grants or loans.

In his memo to the city council, City Manager Nick Green said the water rate increase was necessary to “cover the depreciation of our capital assets in the water fund and to pay down the city’s debt obligations for the West End Water System Improvements and the Industrial Park.”

During council discussion, Councilor Dave Holland asked Green if the rate increases were sufficient to meet the city’s goals looking forward.

Green replied in the affirmative, adding that an end was in sight. He noted that the city’s new geographical information system software will enable the city to more accurately determine asset and depreciation levels to find the right balance.

“We’re not there yet,” he said.

In the case of the sewer fund, Green noted that the city will know even more about its financial position once it has a final design chosen for a new treatment plant and the results become available from a community income survey.

“There’s not much wiggle room,” he said.

In a related agenda item, the council approved $19,000 in budget transfers needed to upgrade the city’s water metering system. About $13,000 will be used to replace the city’s billing software with a new cloud-based software, acquire a new handheld computer and replace the front desk workstation.