Syracuse Sewer Rates To Increase
After 22 years, residents of Syracuse will see their sewer rate go up. After an hour-long discussion, Syracuse Town Council approved a sewer rate increase on first reading during its regular meeting Tuesday night. A public hearing on the matter will be held during the council’s April 15 meeting.
Susan Hasse of London Witte Group which researched the sewer increase structure, noted it was 1992 since the town had a sewer rate increase. One reason for an increase now is the wastewater treatment plant is in need of immediate refurbishment. There is concern about equipment in the plant failing.
Hasse explained, in her research she looked at the change in consumer base, how the rates were structured and the capital improvement fund. Currently there is only $62,000 in the capital improvement fund. Hasse told the council it should have between $250,000 to $300,000. Improvements to the wastewater treatment plant are expected to cost between $750,000 and $1 million.
London Witte Group set up a phased-in approach which will help lock in lower interest rates for anticipated bank notes and bonds. Phase I of the increase will be a 29 percent increase to help build up the capital improvement fund while also having funds for everyday operations.
Phase I rates will be implemented this year. There will be a fixed billing charge of $2.48 for every lot, parcel of real estate, or building within the town limits. The sewer rates will be $6.99 per 1,000 gallons per month for operation, maintenance, replacement and debt service. There will also be a minimum monthly charge for sewage services for $9.47 per month as well.
Phase II rates will be implemented in 2015 with an increase of 5.86 percent, which means fixed billing rates will be $2.63 for every lot, parcel of real estate, or building within the town limits. The sewer rate will be $7.41 per 1,000 gallons per month for operation, maintenance, replacement and debt service costs. The minimum monthly charge for sewage services will be $10.04.
Phase III rates will be implemented in 2016. The fixed billing rate will go up to $3.45 per month while sewage rates and charges will be raised to $9.73 per 1,000 gallons of usage. The monthly charge for sewage services will go up to $13.18.
Councilman Larry Siegel asked about the scope of the project and what it would actually cost. Jeremy Sponseller, public works superintendent, said he had two engineers look at the plant and discuss its issues with him. The numbers he could provide were very preliminary.
Council President Brian Woody explained the committee working on the sewer rate increase looked at doing it in three phases to address the immediate needs of the wastewater treatment plant. Phase III allows the town to stop, slow down or change how it wants to do things depending on the situation.
Woody also noted that doing this in three phases lessens the impact on customers.
The council also approved Sponseller working with the sewer rate committee in picking an engineer to do the preliminary engineering report with the cost not to exceed $25,000. The town also approved hiring Barnes and Thornburg with a cost not to exceed $23,000 as bond counsel.