By JOSH NEWTON
Staff Writer
TAHLEQUAH —
Tahlequah Public Works Authority board members heard from a representative of Allgeier, Martin & Associates Friday about a water and sewer rate study.
Gene Spears and others have been looking into the method TPWA has used to charge customers for water and sewer service.
Spears said the object is to develop a rate that provides services and also allows the authority to “operate in the black,” not lose money, as has happened in the past.
Based on the data Spears collected from TPWA staff, he provided the board members with a couple of billing methods for water, including a base rate that includes 1,000 gallons of water, or a straight rate that does not include the first thousand gallons, and charges for each 1,000 gallons used.
Spears said adopting a base rate that doesn’t include the first thousand gallons would be of most benefit to TPWA.
“A number of people in the utility service advocate a utility try to retain revenue of around 15, 16 percent,” said Spears.
“I’ve always felt if you could retain 10-15 percent of your water revenue coming in, you were probably being prudent and safe.”
Spears recommended board members especially consider a base rate change.
“It’s supposed to return to you the cost of building and having the system,” said Spears. “You have to manage the system, regardless of whether you sell a drop of water. You have to keep up with what it costs you.”
General Manager Mark Chesney said the proposals could mean an increase in water rates for the average customer, perhaps around 30 percent.
Board member Isabel Baker realizes most people are looking for ways to save money, but said considering the rate change is necessary and overdue.
“I think the people will understand that you just can’t keep being ‘in the red.’ You have to be ‘in the black,’” said Baker. “I think these plans are way past due.”
Chairman J.D. Carey agreed with Baker, and said the board, in the past, has tried to “aim toward a moving target,” raising rates only enough to keep up.
“If you let [customers] go on paying a minimal amount over the next 10 years, it catches up with everybody,” said Carey.
Spears also discussed a study of the sewer system and billing.
“You have good operators, apparently a good system,” said Spears. “You’re doing a good job.”
But he also suggested the board consider changing its sewer rates.
One option is to establish a base rate for what the average residential customer will use. Spears said about 85 percent of TPWA sewer customers are residential, and use around an average of 4,000 gallons per month. Under his suggested method, those who use more than that average would pay more than the established base rate.
“The only basis you have for billing a customer is the amount of water they use,” said Spears.
“Residential customers would be the base by which other customers are compared. And there’s a number of communities wrestling with the fact that sewer rates are really going up.”
Spears pointed to other communities charging $25 or more for a base sewer rate. Under one of his study’s estimates, that rate in Tahlequah could be around $10.78 with a new rate system, and keep the system from actually losing money.
Carey and others pointed out that Tahlequah has added obstacles when dealing with sewer treatment because of the scenic river requirements. Spears said Census data shows Tahlequah has experienced significant population growth in recent decades, and expects it to continue with the latest data.
Board members said they would discuss the matter more in coming weeks, but Herb Rozell stressed the need to communicate to the public why rate changes are being considered.
“It needs to be explained, it’s the only way we’re going to survive,” said Rozell.
Spears commended TPWA officials for looking into the matter.
He said a loss of revenue has been overlooked in some communities for decades, and they saw paid a big price.
