By Patrick Webb
InkFreeNews

SILVER LAKE — Silver Lake’s sewer and water rates may be increased in the near future to keep up with inflation and proposed projects.

According to Silver Lake Clerk-Treasurer Tonya Conley, the rate increase proposal came after she sent the town’s budgets to Baker Tilly, the town’s financial advisor.

At the Silver Lake Town Council’s Wednesday, May 13, meeting, the council heard a report from Baker Tilly Partner Eric Walsh, who reported the need to increase rates to cover operating costs and capital improvements.

Silver Lake Water, Street and Sewer Superintendent Joey McNeal stated at the town council’s Wednesday, April 10, one system in use from the 1990s was operating on “borrowed time.”

Silver Lake’s average charge is $87 a month for a household of three. The last rate increase occurred in 2018, said Conley.

“It’s always hard to do a rate increase, because we don’t want to have a burden on our citizens,” said Conley. “But sometimes the cost (of) running a utility, it’s very costly.”

“We can’t let our funds go down to zero where we don’t have any money to keep the utilities in operation,” said Conley.

Silver Lake’s council approved the proposed five year capital plan with a 2-0 vote at their Wednesday, May 13 meeting. Council President Hugh Murfin and Council Member Nichole Taylor voted in approval; Council Member Jean Weller abstained.

“For the past several years, the town has been doing everything it can to keep the cost down by doing a lot of skimping and penny pinching, rebuilding instead of purchasing new,” said Murfin. “But we are now to the point that a lot of our infrastructure is getting toward critical problems that will need to be addressed.”

Murfin explained that some equipment is worn out beyond repair, and equipment needs to be replaced. He also added Silver Lake was running out of spare equipment and parts.

“In some areas, we’re to the point if something goes wrong on a system, say a pump, if we have no back-up, the system could be down for a matter of time, instead of replacing it with a spare,” said Murfin.

Murfin said that inflation was also a factor in rising operating costs and made it harder to put off increasing the costs. Murfin said the rate increase was a “tough decision.”

According to Conley, not all of the items on the proposed capital plan may be implemented. She also shared that some of the projects on the list didn’t have grants available to help cover the costs.

Conley reported that if approved, the proposed rate increases will occur in three phases for sewer: 20% in 2024, 15% in 2025, and 9% in 2026; and two for water, 12% in 2024 and 12% in 2025, “just so that it’s not such much of a hardship on our citizens, to have that rate hike all in one time.”

“Being retired and on a set dwindling in value rapidly, income, I understand the pain and problem that having to raise rates can be,” said Murfin. “ But if the town is to stay solvent financially and be able to function, we are to the point of having no choice.”

According to two copies of Silver Lake’s proposed capital improvements, projects include the purchase of a generator, two electric heaters for a well house and the purchase of lift station pumps, one per year from 2024-2028.

Conley said a public hearing, which is acquired before the rates can be increased, will be held 7 p.m. Wednesday, June 12. At the public hearing, the town council will read the proposed rate increase ordinance, and go over the phases.

The public hearing is at the council’s regular meeting time. The council’s meeting will begin after the public hearing is complete, said Conley. After the council finishes discussing the proposed rate ordinance and phases, the floor will be open for public comment.

“Citizens have a right to speak at that, either for or against or if they have any questions,” said Conley. After the public hearing, the council will read the ordinance again and move forward to a vote for adoption.

Conley said that if approved, the increases will start in August or September.