TAHLEQUAH —
Board members Friday pushed forward on rate changes for water and waste-water services offered by Tahlequah Public Works Authority.
General Manager Mark Chesney provided the authority’s board members with suggestions from Eugene Spears, of Allgeier, Martin and Associates. Spears last month presented conclusions of a months-long survey of the TPWA rate system, and suggestions on, at the least, getting services to pay for themselves.
He also urged board members to maintain some amount of revenue for capital expenses or other emergencies.
The board agreed to have a two-phase rate change for water services, tentatively beginning with the first phase in June. Under the plan, the base rate for water will be $3.60 per month, and each 1,000 gallons used will now cost $2.50 in the city. Customers outside the city will have a base rate of $4.20.
When the authority begins to pay on a loan for the new Keys facilities next March, the second phase will kick in, increasing usage to $2.90 per 1,000 gallons used, and helping the authority pay its semi-annual loan obligation, according to board members.
Board member Kelly Ross asked the authority to consider a freeze of the base rate for certain low-income customers, along with adopting some form of average bill pay, and considering different rates for residential and commercial customers.
Chairman J.D. Carey and board member Herb Rozell both said customers should pay for what they use.
“I have a different philosophy,” said Carey. “I don’t think we’re in the business of determining social issues.”
Rozell said TPWA is in business to keep services afloat.
“My personal feeling is, if you use it, pay for it,” said Rozell.
Board member Isabel Baker reiterated her belief that TPWA’s customers will understand the need to make services self-sufficient, and to not keep using revenue from the electric department to pay the bills of others.
“As sad as it might be to [increase] the rate, I think it’s unconscionable to continue to take money from electric to pay for these other services,” said Baker.
Under current rates, residential customers in the city pay a minimum $3.96 per month, with a cost of $3.96 per 1,000 gallons, up to 2,000. Anything over 2,000 gallons is $2.08 per 1,000 gallons.
Board members authorized Chesney to put the water-rate change on paper and present a final copy of the policy during May’s monthly meeting. If approved then, the first phase would be effective June 1.
Board members also told Chesney to take suggestions from Spears on waste-water rate increases, and to work out a new formula.
Spears had presented two options: a base charge of $20.09 per month, and $2.45 per 1,000 gallons of water used; or a base charge of $10.80 per month, with usage rates at $2.50 per 1,000 gallons for the first 4,000 gallons, and anything over that, $5.10 per 1,000 gallons.
Carey suggested having a base rate of $10 per month, and asked Chesney to calculate what it would cost, per 1,000 gallons, to generate the same revenue as Spears’ suggestions. Board members asked him to present that as a plan next month.
Carey said he didn’t see a reason for having a tiered rate system of usage – paying more for using more.
TPWA employees said, as an estimate, residential customers probably use 5,000-6,000 gallons of waste water per month.
Currently, customers have a $2.50 surcharge per month for sewer services, and pay $2.50 per 1,000 gallons of water used. Commercial customers pay the same.
What’s next
The next regularly scheduled meeting of the Tahlequah Public Works Authority will be Friday, May 13, at 9:05 a.m. in the board room at 101 N. College.
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