McMinnville officials will be discussing a water and sewer rate increase in the near future, according to Alderman Jimmy Bonner.
“I’m going to propose a 1.5 percent increase,” said Bonner. “I’m going to do it because I feel it’s the right thing to do. I would like a chance to explain why.”
The rate change suggestion will be made at the next Water and Sewer Committee meeting of which he is chairman.
Bonner says a small increase annually will prevent a huge increase like the one in January 2014 when customers inside the city limits were given a 19 percent increase and those outside the city limits saw a 30 percent increase.
“If rates go up 1.5 percent, no one will notice,” said Bonner. “When they go up 25 percent because we haven’t raised rates in years, everyone notices. I feel people would rather have a slight increase annually over being hit with a huge increase.”
The city’s Water Department is an enterprise system, meaning user rates, fees and charges must be sufficient to meet the actual costs of providing water and sewer services.
The effect on customers and the annual revenue generated for the department by the 1.5 percent hike has not been calculated. Bonner says he will get that information.
Seven months ago Bonner made a recommendation in committee to increase rates by 1 percent across the board. That discussion, which took place in February, was tabled and not revisited.