This increase will result in an average residential combined monthly water and sewer bill increasing by $3.91 to $56.32.
(SALEM) - A public hearing for a proposed 7.5% water and sewer rate increase will take place Monday during the Salem City Council meeting.
Salem Public Works spokesman Mike Gotterba says in 2004, Salem approved increases for 2004 and 2005 at 6.5%.
This was based on the CIP (Capital Improvement Program) Challenge which called for Salem to reduce its 5-year capital program by $60 million while still completing needed improvements.
In the first two years of the program, Salem was successful in reducing capital improvements by nearly $62 million.
Recognizing the impact that inflation is currently having on the program, $20 million of improvements at the Willow Lake Water Pollution Control Facility were accelerated resulting in a net $42 million savings after 2 years Gotterba said.
A 7.5% increase effective February 1st, 2007 is recommended in order to complete an estimated $276.1 improvements over the next 5 years and to meet recommended debt coverage ratios.
This increase will result in an average residential combined monthly water and sewer bill increasing by $3.91 to $56.32.
Gotterba added that a comparison of residential water/sewer rates in 13 northwest cities shows Salem is ranked at seventh with six cities being less expensive and six cities more expensive.
On November 16th, Salem's Water/Wastewater Task Force endorsed the 7.5% recommended increase by a vote of 7-to-1.
The public hearing will begin at 6:30 PM in the council chambers, 555 Liberty Street SE.
Salem Seeks to Increase Water, Sewer BillsSalem-News.com