The City held three town halls over the last month, supposedly to take in public comment. Most of the comments questioned the $9.4-million water project, which was never put before the public or the City Commission. The City Commission approved the debt for the project about three months ago without questioning how the people would pay for it.
A rate study was done by Rural Community Assistance Corporation’s Karl Pennock. RCAC is providing a bridge loan for 10 percent of the project. Such a bridge loan is required by the U.S. Department of Agriculture, which is providing a $5.4-million loan and $3.9 million grant for the project. RCAC makes sure the City complies with the conditions the USDA imposes, such as ensuring water rates are sufficient to cover the loan debt and to put aside debt reserve funds, short-term asset replacement funds and long-term asset replacement funds.
The public hearing is on the ordinance to increase water rates.
Currently water customers pay an $8.15 base rate, which includes no water. Water is sold in 1,000-gallon units, which are $1.75 per 1,000 gallons. The ordinance states the water base fee will go to $18 a month, which includes 2,000 gallons.
Although Pennock’s study didn’t anticipate the next water-rate hike until 2022, the City ordinance states another 3-percent increase will happen July 2021.
An ominous clause in the ordinance states, “The Governing Body shall require consumers to install water meters, with the exception of services installed for water suppression.”
Does this mean each customer will have to pay for a new water meter upon the City’s demand? And will it have to be a smart meter, as proposed in a recent contract the City Commission approved with Landis + Gyr? That contract is for $1 million to install smart meters for all electric customers, with water meters to be replaced “as the City can afford them.”
The ordinance is to take effect April 1, 2020.
A second public hearing is on the agenda, with action to be taken by the City Commission afterward. It is impossible for the public to weigh in on the matter, since very little is in the public packet.
Traci Burnette, the City zoning administrator, has not included the owner’s application, but she states someone at 112 W. 3rd Ave. wants a plat amendment and a variance.
A plat map is in the packet, which states Daniel Steele is the owner. It appears six extremely narrow lots, all but one being 30 feet wide by 140 feet deep, will become two lots, since there is a dark line dividing the property on the plat map.
It is unknown what the variance request is, which requires all adjacent property owners be notified.
Although City Code states the Planning and Zoning Commission will hold a public hearing on variances and amended-plat applications, the City Commission has not appointed one in seven years.
The next item on the agenda is to appoint Planning and Zoning Commissioners. Seven people have applied for the five-person board: Ron Fenn, Stanley Rickert, Cynthia Kropp, James Bush, Merril Dicks, Chris Sisney and Lillis Urban.
This agenda item is listed as “new business,” and it is unknown if the City Commission will take final action on P&Z Commission appointments.