Ferrysburg officials will consider hardship exemptions for rate hike

Tue, Jul 8, 2008

FERRYSBURG — Residents spouted off Monday night about a doubling of water and sewer charges which went into effect on Oct. 1 last year.

The rate increases were unanimously approved by City Council last summer after a professional water rate study conducted by now-retired engineer and consultant Gary Vogt.

Ferrysburg residents had not endured a significant water and sewer rate increase in more than 16 years, according to City Manager Craig Bessinger.

Many in the standing-room-only crowd of about 65 people at council's meeting Monday said they consider the ready-to-serve charges — which increased from an average of $6 per quarter to $53 per quarter, before factoring in actual water use — unfair.

"Since the new water rate went into effect, I've heard from a lot of people who are not happy with it at all," said resident Al DeWitt. "It's not fair to poor people or retirees on limited income."

Spring Lake Township resident Susan Meyers, who owns a rental home in Ferrysburg, said she pays much less in water fees for her township home, even though she sprinkles her yard often. Her renters in Ferrysburg do not sprinkle, she said.

Meyers said the tab for her Ferrysburg house runs about $116 per quarter, and about $39 for her Spring Lake Township residence.

Spring Lake Township water department officials reported Monday their current ready-to-serve charge is $19.60, up from $17.99 last year.

Meyers said she fears for her elderly parents, whose Ferrysburg water/sewer bill recently increased from about $40 per quarter to more than $100.

"My parents are on Social Security," Meyers said. "They can't cut back on the amount of water they use because that's not where the cost is. That's just not fair. Everyone here is hoping you'll take another look at this and work with us."

Council agreed to proceed with research on potential poverty exemptions to help those who cannot afford the new rate hikes. A public work session is scheduled for July 21 at Ferrysburg City Hall.

For its Aug. 4 meeting, council scheduled to replay a PowerPoint demonstration from Vogt explaining the reasons for the rate increases. City officials said few residents attended the meeting last summer when Vogt gave the presentation.

Several council members agreed not much may change in the final scenario, because utility costs are up and need to be paid for — but they said they're willing to consider options for low-income residents.

"We should not be making you decide between your medicine and your water," said Councilman Chris Larson.

According to recent studies, Ferrysburg has the highest rate in Northwest Ottawa County with a combined water/sewer cost of $5.16 per 1,000 gallons of usage. Spring Lake Village, which recently launched a multi-year rate increase, stands second at $4.98 in combined charges.

The above figures include ready-to-serve charges, which are used to maintain current operations as well as repair future leaks and other system failures.

The city of Grand Haven ranks third in the area at $4.60 per 1,000 gallons, followed by Spring Lake Township at $3.89 and Grand Haven Township at $3.86.

Ferrysburg officials said their water fund has dwindled over the past few years to keep up with higher wholesale costs, and they now need the hike to make up the difference.

Mayor Jeff Stille said it's not the ready-to-serve charge that's doubling the average Ferrysburg water bill, it's the higher cost of doing business.

"We buy the water and we sell it," Stille said. "There is no profit to the city whatsoever. We had a professional come in and he said we have to set up a kitty, basically."

Stille suggested residents may be more pleased today if council had taken action four years ago to begin raising rates incrementally.

"There could have been a better transition," the mayor said, adding that Grand Haven and other municipalities receive much more water/sewer revenues due to commercial industries, which pay higher rates. "But we rode out the surplus (account) until it was depleted. Now we have to pay for it."

Stille likened the rate hike to a bandage being suddenly ripped off.

"It hurts," he said.

Council members said they opted to raise the ready-to-serve charge to level the playing field for part-time residents with seasonal cottages, who typically pay much less in actual water use than full-time residents. They considered options, such as raising actual water use charges, as "subsidizing" part-time residents.