Ferrysburg reduces water, sewer rate

Tue, Jul 22, 2008    to del.icio.us

FERRYSBURG — The city will reduce water and sewer charges by an effective rate of 9.5 percent, retroactive to July 1, after public outcry over recent hikes.

Ferrysburg City Council voted 6-0 Monday night to cut the rates, which City Manager Craig Bessinger estimates will slice the average residential water bill from $146 to $133 per quarter.

After more than 65 residents spoke out against recent rate hikes at council's July 7 meeting, Ferrysburg officials crunched numbers last week and determined about $64,500 could be slashed from the water and sewer operating budget — affording a savings to residents.

But the rate decrease comes with a potential future cost. In order to lower prices now, the city is foregoing scheduled maintenance and water meter replacement.

Council approved the rate increases last year after a professional water rate study conducted by consultant Gary Vogt. The new rates went into effect Oct. 1.

Average ready-to-serve charges increased from about $7.50 per quarter to almost $35 per quarter, City Clerk Debbie Wierenga said Monday.

The main problem, according to staff and council members, is that Ferrysburg residents have not experienced a rate hike in 17 years. City officials say it was a mistake to not incrementally raise rates, but say past city administrators had "dropped the ball" on recognizing the situation.

Councilwoman Regina Sjoberg, speaking in front of another overflow crowd Monday night, said council learned a lesson from those mistakes.

"This (problem) came about by years of people not looking at it," Sjoberg said. "Those people are long gone now."

Many residents complained two weeks ago, and again Monday night, about the ready-to-serve fees.

Council members stressed it's the best way to make water and sewer fees "fair and equitable" for both part-time and full-time residents.

If there were no "access" fees, as Councilman Chris Larson calls the ready-to-serve charge, full-time residents would be footing the bill for summer residents. Charging only for actual water usage could raise rates for full-time residents, because seasonal customers would pay much less proportionally, city officials said.

Monday's council action reduced the water ready-to-serve fee from a 60/40 ratio to a 66.66/33.33 ratio.

For the average resident's bill, it means 2 cents more per cubic meter (about 264 gallons) for actual water use, but the ready-to-serve charge will drop by $8 per quarter. Sewer rates — which are calculated from January through March, and remain steady for the year to not account for such things as lawn sprinkling during summer months — will rise by 1 cent per cubic meter, while the ready-to-serve charge drops to $6 per quarter.

Most municipalities use a similar common factor when determining sewer rates without a separate meter.

After Larson projected his family's water and sewer bill on an overhead projector Monday, several residents said their bills were much higher. Larson was billed for 66 cubic meters of water last quarter. A woman attending the meeting said her smaller household was billed 264 cubic meters for the same quarter.

City officials said anyone with rates that may seem haphazard to request a city meter inspection.

Council members also said they're willing to look at payment plans or poverty exemptions, although recent research has determined not many in the city would be eligible for such relief, Mayor Jeff Stille said.

According to recent rate studies, Ferrysburg is the highest in the Tri-Cities area 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 city of Grand Haven ranks third at $4.60 per 1,000 gallons, followed by Spring Lake Township at $3.89 and Grand Haven Township at $3.86.

The above figures include ready-to-serve charges, which are used for operations, maintenance and repairs.

State laws changed four years ago to disallow municipalities from using a millage or special assessment to fund local water and sewer funds. At that point in time, Ferrysburg had a $200,000-plus surplus from millage-generated income for water and sewer costs. Instead of gradually increasing rates, Ferrysburg spent down its surplus to cover its costs.

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

"It's not just the fault of this council," resident Roberta Porter said, adding that residents are also to blame. "I feel the citizens of Ferrysburg didn't question why their water bills weren't going up every year. I'd like to thank you for going back and taking a look at this."