City Council raises water rates to offset increasing deficit in funding
The Grants Pass City Council voted to raise water rates for the average customer by $3.60 per month beginning in 2013 and another $3.60 beginning in 2014 to offset an annual $738,000 budget shortfall.
The extra funding raised through the increased rates will go towards maintaining the current infrastructure and expanding on future water projects.
City Manager Aaron Cubic says that the average water customer in Grants Pass pays $15.16 monthly compared to $26.62 as a state average and $23.66 as an average in Southern Oregon. Additionally, Grants Pass has a cost recovery ratio, which determines if a city is able to pay its day-to-day expenses, is rated at a 1.03 compared to the statewide average of 1.25. These statistics suggest that the city has been running a lean water department, according to Cubic, but they are unable to meet the funds needed for projects such as the expansion of Reservoir Three from 3.5 to a 5 million gallon capacity.
Councilors were faced with four options. Option one would have raised rates by $1.88 each year for the next two years and would have supported day-to-day operations. Option two, the one councilors chose, will fund projects over the next 20 years. Option three was a nominal rate increase based on councilor’s determination. Option four would have meant no change to charges and no opportunity to build future projects.
Posted on 9/20/12 7:12AM by Jared Dill
