The Salem City Council has voted to raise water and sewer rates by 25-percent beginning August 1st. The increase will mean a $12.42 a month increase to the average customer.
The council was told a 40-percent water rate increase is needed to build back reserves to where they need to be, but agreed that was too much at once. The impact of the 25-percent rate increase will be reviewed at the first meeting in January to decide what further rate increases are needed.
Finance Director Kelly Barrow emphasized the fund was not bankrupt but was losing $300,000 a year and needed to be turned around.
“Whenever we do finally get to say that 40% number my recommendation would be we review again and see where we are and if it looks like we are doing better then I think there needs to be a yearly 1.5% increase. That’s a lot easier for our residents to take on. Had we done a 2.66% increase over the last 13 years we would be where we needed to be.”
Barrow says in addition to not raising rates for 13 years, costs have escalated greatly during the past few years.
“Chemicals have gone up drastically just in 3 years. Our infrastructure, we keep up on it and do a lot of infrastructure every year and that is a big cost.”
Barrow noted the city’s water rates would remain below those of other nearby cities with published rates.
Public Works Director Annette Brushwitz added the rate hike needs was the result of a lengthy rate study by the city’s water engineers Curry and Associates.
“It’s a very intensive study. The go around looking at neighboring communities, the costs we have incurred, they look at the possibility of infrastructure improvements that will be required in the future. So to say we off the cuff just increased it is not what is happening.”
Former Mayoral candidate Brock Waggoner questioned how the council could let a $300,000 yearly loss go on for four years. He questioned if they waited until after the election to announce the need for the rate increase for political purposes and promised they would be held accountable for their actions.
“I can tell you right now 40% increase is going to drive more residents out of this town than you want to realize. And your tax base is going down on top of everything else. And on top of that those that ran that were previously on this council said we have had balanced budgets without increases. Was that a campaign lie?”
Mayor Nic Farley countered that he had said during the campaign a water rate increase was needed and said the city had been spending down the fund balance.
