Milford to Consider 30 Percent Sewer Rate Hike
July 28, 2016 at 4:25 p.m.
By Jordan Fouts-
That was the recommendation Monday from Umbaugh and Associates in its report on the financial state of the wastewater treatment department.
The council had earlier in the year considered a much smaller increase, but decided to hire the accounting firm to get a more accurate picture.
John Julien, an Umbaugh partner specializing in municipal utilities, walked the council through a study of wastewater department income and expenses from 2009 to September. He projected a yearly need of $460,000 in the future, which Milford falls $107,000 short of covering with current income levels.
The needed income amount includes regular operating expenses as well as infrastructure investments and payoff over the next 12 years of the remaining $2.75 million of the 2004 wastewater treatment plant bond.
He projected potential savings of $8,000 a year if Milford refinances the 4.3 percent bond, which would require only a 28 percent rate increase.
The town will ultimately have to wean itself off of subsidizing wastewater with County Economic Development Income Tax funds, Julien said, noting user fees should make the department self-sufficient. He said the rate increase could be phased in over two years.
A low-end user paying $30 bimonthly could expect an extra $9 on their bill after a 30 percent increase, he observed, while an average user of 4,000 gallons a month would pay up to $71.
He told the council he will provide a draft resolution for a 30 percent “worst-case scenario” increase at its December meeting, which will be up for public hearing in January. The council would be able to lower the proposed rate increase before approval in February.
“I really think we need to get this thing going,” councilman Bob Cockburn remarked. “We should have done it a couple years ago.”
Julien said he will first go over the figures again with an eye for high-volume and out-of-town users to see if that changes the recommended rate.
Also during the meeting, the council approved a 3.5 percent salary increase for town employees, half a point higher than their previous increase proposal for 2013. Salary increases have ranged from 0.75 to 3 percent in recent years, they observed.
Councilmen also approved $9,000 for a cutter and spreader for the Milford Fire Department, which they use when responding to car accidents; and $2,109 for three replacement oxygen bottles for firefighters. And the council approved up to $1,750 for a new light bar for a police department cruiser.
And town council approved a Tax Increment Finance district for land north of Milford expected to be the site of industrial development. The TIF district proposal will be up for public hearing with the Milford Redevelopment Commission Dec. 6 at 10 a.m. [[In-content Ad]]
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That was the recommendation Monday from Umbaugh and Associates in its report on the financial state of the wastewater treatment department.
The council had earlier in the year considered a much smaller increase, but decided to hire the accounting firm to get a more accurate picture.
John Julien, an Umbaugh partner specializing in municipal utilities, walked the council through a study of wastewater department income and expenses from 2009 to September. He projected a yearly need of $460,000 in the future, which Milford falls $107,000 short of covering with current income levels.
The needed income amount includes regular operating expenses as well as infrastructure investments and payoff over the next 12 years of the remaining $2.75 million of the 2004 wastewater treatment plant bond.
He projected potential savings of $8,000 a year if Milford refinances the 4.3 percent bond, which would require only a 28 percent rate increase.
The town will ultimately have to wean itself off of subsidizing wastewater with County Economic Development Income Tax funds, Julien said, noting user fees should make the department self-sufficient. He said the rate increase could be phased in over two years.
A low-end user paying $30 bimonthly could expect an extra $9 on their bill after a 30 percent increase, he observed, while an average user of 4,000 gallons a month would pay up to $71.
He told the council he will provide a draft resolution for a 30 percent “worst-case scenario” increase at its December meeting, which will be up for public hearing in January. The council would be able to lower the proposed rate increase before approval in February.
“I really think we need to get this thing going,” councilman Bob Cockburn remarked. “We should have done it a couple years ago.”
Julien said he will first go over the figures again with an eye for high-volume and out-of-town users to see if that changes the recommended rate.
Also during the meeting, the council approved a 3.5 percent salary increase for town employees, half a point higher than their previous increase proposal for 2013. Salary increases have ranged from 0.75 to 3 percent in recent years, they observed.
Councilmen also approved $9,000 for a cutter and spreader for the Milford Fire Department, which they use when responding to car accidents; and $2,109 for three replacement oxygen bottles for firefighters. And the council approved up to $1,750 for a new light bar for a police department cruiser.
And town council approved a Tax Increment Finance district for land north of Milford expected to be the site of industrial development. The TIF district proposal will be up for public hearing with the Milford Redevelopment Commission Dec. 6 at 10 a.m. [[In-content Ad]]
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