The Salem City Council Monday night will begin a discussion on how to phase in a needed water and sewer rate increase to stem a more than $300,000 a year loss in operations alone. The council was made aware of the issue that has dropped the city’s water and sewer surplus funds to under $1-million. A lack of a rate increase for the past 13 years was cited as the reason.
Finance Director Kelly Barrow is especially concerned about the hit the fund balance would take if there was a major repair project that needs to be undertaken.
City Manager Rex Barbee says they will not seek a rate increase to cover all the needs at once.
“There is a need for as much as a 40% increase in the water/sewer rates to get us where we need to be, but we aren’t asking the council to bite off that much for the local users to have to pay. We are proposing the possibility of a 20-25% rate increase initially and then have another rate increase on an annual basis until we get to the point where we can cover costs.”
Barbee says the fund needs to be shored up before the fund balance draws the attention of auditors and the state.
The council will be asked to pass a resolution to allow the 50th annual Little Egypt Festival Parade to be held on the first Saturday in October.
Barbee will give an update on a small leak in the high-pressure gas feeder line bringing natural gas to Salem. The leak is northwest of Sandoval. A bypass would need to be put into place due to the high pressure of the line and the need to keep gas flowing. Barbee says parts had to be manufactured and will be
available the first week in June. He estimates the cost of repairs at $50,000.
The council will consider the purchase of a new hoist for the crane at the water plant that is used to position the one-ton chlorine cylinders. The apparent low
bidder is Shannahan Crane and Hoist of St. Louis at a cost of $7,211.
The council will consider final approval to modifications in the city’s pyrotechnics ordinance and review final designs for the logo to be placed on the city’s two Industrial Park Water Towers when they are repainted this summer.
The city’s new Assistant Public Works Director Cory Purintun will be introduced. He moved into his new position on June first.
The meeting begins at six Monday night at Salem City Hall.
The Salem City Council will begin discussion on how to phase in a needed water and sewer rate increase to stem a more than $300,000 a year loss in operations alone. The council was made aware of the issue that has dropped the city’s water and sewer surplus funds to under $1-million dollars. A lack of a rate increase for the past 13 years was cited as the reason.
Finance Director Kelly Barrow is especially concerned about the hit the fund balance would take if there was a major repair project that needs to be undertaken. City Manager Rex Barbee says they will not seek a rate increase to cover all the need at once.
“There is a need for as much as a 40% increase in the water/sewer rates to get us where we need to be, but we aren’t asking council to bite off that much for the local users to have to pay. We are proposing the possibility of a 20-25% rate increase initially and then have another rate increase on an annual basis until we get to the point where we can cover costs.”
Barbee says the fund needs to be shored up before the fund balance draws the attention of auditors and the state.
The council will be asked to pass a resolution to allow the 50th annual Little Egypt Festival Parade to be held the first Saturday in October.
Barbee will give an update on a small leak in the high-pressure gas feeder line bringing natural gas to Salem. The leak is northwest of Sandoval. A bypass would need to be put into place due to the high pressure of the lane and the need to keep gas flowing. Barbee says parts had to be manufactured and will be
available the first week in June. He estimates the cost of repairs at $50,000.
The council will consider the purchase of a new hoist for the crane at the water plant that is used to position the one ton chlorine cylinders. The apparent low
bidder is Shannahan Crane and Hoist of St. Louis at a cost of $7,211.
The council will consider final approval to modifications in the city’s pyrotechnics ordinance and review final designs for the logo to be placed on the city’s two Industrial Park Water Tower when they are repainted this summer.
The city’s new Assistant Public Works Director Cory Purintun will be introduced. He moved into his new position June first.
The meeting begins at six Monday night at Salem City Hall.
