Inevitable increase?
Wed, 07/17/2024 - 10:53am
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Public hearing on water rates held in Mtn. View
By:
Laura Wagner, contributing writer
The looming question is not if, but how much, water rates will increase in Mountain View. Citizens took the opportunity to voice their objections at a public hearing on July 9.
Mayor Charry McCann began by reading a letter from the Department of Natural Resources (DNR). “Based on a preliminary review of the city's revenue expenditures, the current user charges are not sufficient to provide the debt service coverage,” she read.
“We have been awarded the state revolving fund, a loan of $3,091,500 at a rate of 1.57%, and a grant of $3.5 million (does not have to be paid back) for this project,” Mayor McCann said. According to her, per the DNR, the city needs the user rates to provide adequate revenues for the system’s operation and maintenance, including a reserve replacement for the loan.
The hearing’s big question was – how much will bills be each month? The city does not have an exact answer. An estimate is more than a three-fold increase from ten to thirty-four dollars per month. Kent Peetz, Senior Project Manager with Horner and Shifrin, explained that like any loan, the DNR wants to make sure that their investment is covered and maintained. This security is the reason why an operation and maintenance fund, along with a reserve replacement, is a term of the loan. It ensures that user rates cover the costs of operation of the system, and there would be adequate money in a fund for repairs and maintenance to the city’s facilities in addition to covering the repayment of the loan.
The Mountain View Board of Alderman were adamant at the hearing that they do not want to raise the rates. As Alderwoman Judi Colter pointed out, most citizens are on a fixed income. The city, however, does not have a choice. Alderman Calvin Perry said he hates to see rates go up, but he is in favor of the expenditure as it will help Mountain View grow. He even went to several neighboring towns and inquired about their rates. He learned that Mountain View has one of the lowest rates around. Mayor McCann has stated in past articles from the Howell County News, “My hope is for the citizens of Mountain View to realize how important this is for the city.”
The meeting became mottled as voices were raised, and community members began to argue with the board. Dozens of community members came out to hear an explanation from the city’s engineering firm and from the board of alderman regarding the city’s usage rates.
Ron Graef questioned the accuracy of the numbers presented in the DNR spreadsheet, a document that provides an initial estimate of the increase needed to satisfy the loan requirements.
Cliff Burdick called out that the minimum, “seems a tad excessive.”
“I don’t want an increase because someone is fiscally irresponsible. There should be a plan to do some alleviation for people that don’t even use the minimum. You can make the minimum 5,000 gallons, but I still only use 400,” Burdick added.
Most of that base charge would go towards the DNR loan, Peetz said.
“Well, I didn’t take out a loan …. The interest rate should come out of the city budget,” Burdick countered.
Former Alderwoman Brenda Colter took the floor and expressed her disdain for the rate increase and accused the city of forcing citizens to pay for something they are not using. The city charges a set rate for the first 1,000 gallons used, and then a lesser rate each additional 1,000 gallons used.
“I wish there was a plan that we could pay on what we’re using, not what you guys want us to use or what you need to pay your bills with,” Colter said.
Alderman Calvin Perry offered an explanation.
“At this time, we are not supporting our water and sewer departments. They are deteriorating to the point where your children or grandchildren are going to pay tens of millions of dollars to fix it, and it will not be hardly fixable. That’s the point I’m trying to make. We are trying to make it to where all you pay is $34 a month.”
“DNR is telling us $34 is what it takes to maintain and pay the system?” Alderman Perry asked Peetz.
“Yes sir,” Peetz replied.
As the hearing progressed, commentary branched out to overall budget woes.
“One of my biggest questions to them is that throughout this, since this election, the books have not been balanced,” Devan Daniels said. “We don't know the money that's running the city. How can we take on a new debt? How can you reason a new debt be given to the taxpayers?”
“How are you guys expecting us to pay for more when you guys are so frivolous in your spending?” he asked.
“Do you have anything about the user charge?” asked Mayor McCann.
“How are you guys expecting us to pay for more when you guys are so frivolous in your spending?” Daniels repeated.
Former Mayor Donnie Pruett interjected, asking Peetz, “If we sit on our hands and don’t do anything, what’s going to happen?”
“If we sit our hands and don't do nothing, further down the road, they most likely say, you gotta fix it right now. Right now, we're getting a $3.5 million grant. We're looking at over $6 million in repairs, of which more than half of it is a grant that you're not paying for. It's from the state of Missouri. It gives you over half the cost of your project. So, the answer is, it would cost a lot more if you don't take advantage of the grant opportunity,” Peetz said.
The City of Mountain View has been approved for a $3,091,500 DNR loan to cover a $6 million project. In addition to the loan, the city has been awarded a $3.5 million grant from CDBG (Community Development Block Grant), funds that do not have to be paid back.
The hearing closed with no action, vote, or motion from the board.