The city appears to be headed toward higher sewer and water
rates and fees in 2008.
Morgan Hill – The city appears to be headed toward higher sewer and water rates and fees in 2008.
About 14,000 ratepayers could see water bills jump by 6 percent, an increase of about $2 on the average $30 water bill, if current recommendations are approved by the Morgan Hill City Council this fall.
Additionally, developers could see water hook-up fees soar by $1,000, rising from $1,996 to $2,940; sewer hook-ups could rise nearly $4,000, from $9,060 to $12,926.
But the numbers are still moving, officials said, pending further study.
These early recommendations, made by Berkeley-based Bartle Wells Associates, the city’s financial consultant on a forthcoming utilities study, were discussed Wednesday night by the Morgan Hill Utilities and Environment Committee.
While accepting that rates and fees may need to be adjusted to cover expenses, committee members Mark Grzan and Larry Carr opened a discussion on how the increases should be applied to encourage water conservation. Currently, the city bills water users on how much they consume, with prices rising as faucets run longer. But every customer also pays a base rate, typically $5.41 a month, which the city is considering raising.
Carr also suggested telling people on their bills which of the city’s three rate tiers they fall into in terms of usage.
“I know if I’m paying more,” Carr said, “but I don’t know what tier I’m in.”
The city is still fine-tuning its calculations for the proposed rate increases, but officials said the bottom line is they need more money to replace aging equipment, pay for infrastructure as the city grows and finance Morgan Hill’s share of a sewer plant expansion. The project is expected to cost an estimated $41.8 million dollars during the next five years.
