Posted: 1/16/07
City will play catch-up with water and sewer rates
By Jane Palen
Managing Editor
Residents of Caledonia will see increases in their water and sewer rates during the first half of 2007.
City accountant Stephanie Mann told the council at its first meeting of the year that rates are lagging behind expenses in the water and sewer departments. Rates have not increased since 2002, despite a recommendation from Davy Engineering that year that the sewer usage rate be increased to at least $1.96 cu.ft. The council at that time raised the rate to $1.70.
Mann recommended a five percent increase in the base rates and a 20 percent increase in the usage rates. Sewer rates are based on water usage. The increases will result in an additional $29,377 for the water department and $44,871 for the sewer department.
For most homes in the city, the increase will be $5 to $6 per month.
The council agreed to increase the base rates beginning February 1. The increase in usage rates will be effective May 1.
The base rate for water depends on the size of the meter. The base rate for meters up to 3/4-inch will increase from $8.20 per month to $8.61. The vast majority of houses in the city as well as several businesses fall in this category. The base rate for 1 inch meters will increase from $16.40 to $17.22. For 1 1/4 inch meters, the rate will go from $24.70 to $25.94.
For 1 1/2 inch meters, the rate will increase from $33 per month to $34.65. For 2-inch meters the rate will increase from $57.70 to $60.49.
There are three businesses in the city that have three-inch meters, and their base rate will increase from $131.80 to $138.39.
One business in the city has a four-inch meter. The base rate for that meter will increase from $205 to $215. 25.
The increases are expected to bring in nearly $22,000 in additional revenue.
For sewer usage, the base rate is $3.90 for meters up to 3/4 inch and will increase to $4.10. For 1-inch service, the rate will increase to $8.19. For 1 1/4 inch, the new rate is $12.29 and for 1 1/2 inch, the base rate will increase to $16.38.
Businesses with the 2-inch service will see an increase to $28.67 for a base rate. For those with the 3-inch service, the base rate will increase to $65.52. There is one business with a 4-inch meter and that rate will go from $97.50 to $102.38.
Caledonia Haulers pays a base rate of $720.25 per month, which will increase to $756.26.
Increases in the base rate for sewer will generate about $4,000 for the city in 2007.
The rate for usage, based on 100 cubic feet, will increase from $1.70 to $2.04.
Despite the increases, losses are still anticipated in both funds. After debt service, there is a projected shortfall of $45,507 in the water department and $115,151 in the sewer department. Those numbers are only estimates and will be affected by usage, business growth or decline, and housing growth or decline.
Job description for ambulance director reviewed
In other news, the council reviewed a job description for the position of ambulance director recently vacated by Robert Augedahl, who held that position for more than 20 years. Mary Betz is the interim director.
Mayor Mike Morey said one question that the council need to consider is whether the person selected for the position should be certified to teach the continuing education classes required of the emergency medical technicians.
Morey said he would like to see the person selected to be certifeid to teach within a year of hiring. He estimated the pay at between $800 and $1,000 per month for the probationary period. The person selected will also take ambulance calls.
The former director earned $840 per month and as a a certified instructor saved the city the cost of providing continuing education for the ambulance crew by teaching the classes himself.
Morey said that the description for the position was developed with input from ambulance attendants.
In a related matter, Morey provided the council with a copy of his letter of resignation from the ambulance service, citing personal reasons. He said he hopes to be able to rejoin the ambulance at a later date.
Weather thwarts progress at new electrical building
The new building for the electrical department has been delayed .
Administrative coordinator Mike Gerardy told the council that the projected finish date of February 10 will not be met because the ground is wet and the concrete floor cannot be poured. Gerardy said he doesnít know how long it will take before the ground is dry enough for the contractor, Travis Bernau, to pour the floor. Steve Bauer, who was hired to build the structure, was also at the meeting and told the council that the walls are built, but nothing more can be done at the site until there is a floor.
The council agreed that for best results work should stop until the floor is in.
Bauer also asked the council if he could submit a bill for the materials and labor that he has in the project so far. The council asked him to return to a later meeting with partial estimate and the city would pay it.
In other news, Gerardy reported that the bases are in for the lights at the school intersection and they should be up shortly.
He also told the council that 132 light bulbs were stolen from the pole wraps that were put on streetlights for the Christmas season.
Caledonia Argus
314 West Lincoln St.
P.O. Box 227
Caledonia, MN 55921-0227
507/724-3475
E-Mail: editor.argus@ecm-inc.com