SILVER LAKE – Tuesday night the Silver Lake Town Council approved the first water rate hike in 13 years. During their final council meeting of the year, the Silver Lake Town Council voted 2-1 in favor of a 15.8 percent increase in the water rates for Silver Lake customers and to implement a water hydrant fee of $4.74 per month. The water rate increase will help to offset the loss in revenue from loss of water customers and the loss of money from property taxes. Eric Walsh, of H.J. Umbaugh was available to answer any questions and to explain the reason for the rate increase. “The primary source of income for cities is property taxes,” Walsh said. “ Since 2008 the towns assessed values have dropped 5 million dollars. That means there is $20-25,000 per year in revenue lost for the city.” Walsh explained the rates to a crowd of about twenty citizens. The average customer who uses 4,000 gallons of water will see a $4.89 increase in rates. In addition to the water rate increase Walsh explained that they were looking at a hydrant fee of $4.74 for those customers in town to help offset the deficit of the general fund. “Without the fee the general fund will be on pace to lose $50,000 next year,” Walsh said. “With the fee the council will need to find $20,000 to cut or there will be a deficit in the general fund.” After discussing possibly waiting until 2013 to implement the changes the board decided against it. A few citizens pushed the board to reconsider and cut more out of the budgets before they push the rates on the people of Silver Lake. Ultimately it came down to the deficits the town will have in 2012. Walsh informed the board that without the hydrant fee there will be a $50,000 deficit that the town will have to overcome. “I think Umbaugh has already completed their study and I am comfortable with it.” Council member Chad Minor said. “ If you have suggestions to how we can save more money I am willing to sit down and hear it, “ Silver Lake Town Clerk Angie Glass informed the council of the situation if they did not have the fees. “If we do not raise both there will be $30,000 that wont be paid on the water in the future,” Glass said. The council made it known that they were not in favor of raising rates, but they knew it was needed to keep the town running. Council member Gale Owens was not in favor of any increase, but knew that they were needed. “I will support one or the other, “ Owens said. Minor thought they should support the whole thing. In the end Minor motioned to accept the water rate increases and Linda Baker seconded. Baker and Minor voted to increase the rates and Owens voted not to. The next meeting will be Jan. 17, 2012 at 7 p.m. at the Silver Lake Town Hall.
