Salem City Manager Rex Barbee is not recommending any additional water rate increase now. His comment came Monday night as the council began a review of the impact of the water rate increase last summer. They also heard two citizens raise issues about the water department’s operation.
Barbee accessed the current impact of the water rate increase.
“It’s apparent that the increase was warranted and making some improvement on the budgetary side of things with the income being increased. We have not seen residents’ accounts that have been overly negatively impacted. We haven’t seen a tremendous number of increases in our delinquencies.”
And as far as the need for a further water rate increase.
“I think that with the winter months coming up, the gas rates and usage is going to change for a lot of people. In my opinion, we take the next six months to see what the water rates will be and then look at a rate increase possibly around June or July of this year.”
Former Mayoral Candidate Brock Waggoner told the council that instead of raising rates, the council should see what is happening in the water department. He asked for a review in a proper manner with more transparency.
“If I was to bring an accounting firm in here to review my accounting and I would say oh I have another $600,000 in other expenses. It’s something that’s a tried and true known application of something that has been going on for however long, they would laugh me out the door and fire me because that would mean I’m overspending on things and not watching the budget.”
Waggoner had words with Councilman Jim Koehler after he approached the podium and Koehler asked him to apologize for using profanity and demeaning city officials when he addressed the water issue last summer. Waggoner refused saying he was just bringing issues before the city council at the time.
Another resident, DeWayne Collier, who also addressed the council during the initial debate on the increase last summer said he still had not got answers on the remaining life of the water plant and the silting in of the Salem Reservoir. Mayor Nic Farley responded that Currey and Associate Engineers had indicated the water plant had at least ten years of life remaining. At that point, Collier repeated his call that the council looks at other options instead of continuing to invest more in the old plant.
Farley also asked for a more detailed breakdown.
Barbee indicated City Finance Director Kelli Barrow was expected to have more financial information for the meeting but has been out sick. He promised more details on the expenditures when she returned. However, Barbee added all of the water department expenditures had been approved by the city council.
