Having a drink of water or flushing the toilet is going to cost residents a bit more beginning with the next water billing cycle.
The City Council voted Tuesday to raise both culinary water and sewer/wastewater rates, the first rate hike since 1991. The increased revenues will give the city money to do major upkeep on existing facilities and to purchase a new water tank and find a new water source.Water users will pay $1 more a month for basic service up to 8,000 gallons used, plus 4 cents per 1,000 gallons used above that. The sewer rates will climb 50 cents a month to $10 for basic service, plus 78 cents for each 1,000 gallons used, up 5 cents from the current rate. Users outside the city limits will be billed double the amount.
The sewer rate increases will give Springville the revenue needed to meet Utah state standard requirements for facility upkeep.
Continued residential growth coupled with a flat economic base made it impossible for the city to keep rates at current levels. For a number of years the city has been trying to work with fewer operating funds, but the belt could no longer be tightened, officials said.
"Any increase is a big increase when you talk about utilities," said Councilman Calvin Bird.
The council also approved the city applying for a $2 million revenue bond that will provide a five-year cash flow for water projects including the new tank. The bond would be paid off over 20 years.
In discussing the bond, Councilman Ralph Hitchcock raised concerns about the city's current bond indebtedness. That same concern was raised by city auditor Niel J. Strong in last December's audit report.
"As a city, aren't we next to our bonding limit?" Hitchcock asked. "The audit indicated a concern for the amount of bonding we have."
State law limits cities on the amount of their bond debt. They are allowed to have up to 4 percent of the city's assessed value in general obligation bonds, and no more than 12 percent of its assessed value in revenue bonds. If the $2 million application is granted, the revenue bond indebtedness will be at 6.5 percent of the city's assessed value of $583.3 million.
That troubles Strong, who said he was generally concerned of the overall debt of the city. "But I can't comment on anything since last June's audit," Strong said.
The council also gave approval for the city to seek "conservation" grant money that could be held to help with a future secondary water system. The much-needed system could cost the city as much as $20 million.
Any water user may petition the City Council to make fee adjustments.