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City eyes sewer rate hike

Managing editor

Marion City Council reviewed a possible sewer rate increase for Marion city customers Monday to help fund a bond issue to dredge the city’s sewer ponds.

The proposed increase was from $12 to $15 base rate per month for all customers and from $1.20 to $1.50 per 1,000 gallons of water usage for residential customers only.

The bond issue was passed a month ago. The city had received federal funding to make improvements to the wastewater treatment plant. To accept the federal grant, the city had to provide matching funds. At the same time, the city was planning to replace water lines on South Freeborn, South Roosevelt, and Locust streets and decided to obtain one bond for the two projects — waterlines and sewer pond improvements.

To service the bond, it was determined an increase in sewer rates was necessary.

Currently, residential and commercial customers pay a base fee of $12 per month. Residential and commercial customers are charged $1.20 per 1,000 gallons of water used for sewer purposes. Residential customer usage is not monitored on a monthly basis. Instead, the city takes the water usage average of customers in January, February, and March to determine the monthly usage for the remainder the year. The reason for using those months is that there typically is no additional water usage for watering lawns and gardens and washing vehicles during those months.

City administrator David Mayfield said sewer rates have not been increased since 2003. Water rates increased last year.

“How many (customers) aren’t paying their bills?” councilman Bill Holdeman asked. “No one else is getting (pay) raises.”

“We have to cover the bond issue,” Mayfield said.

“We put so much away for police cars and equipment, why can’t we put money aside for maintenance on the sewer system?” Holdeman asked.

“When we’re talking about $375,000 for dredging sewer ponds, we have to borrow money to do it,” Mayfield said.

The dredging maintenance only occurs every 20 years, Mayfield added.

Councilman Jerry Kline asked how Marion rates compared with other cities. Assistant city clerk and utilities clerk Becky Makovec said in past comparisons, Marion rates were either the same or less than other cities.

It was explained that the $3 monthly increase would be considered a permanent increase and the average residential customer would see a $3.90 per month total increase on average.

“There’s a lot of water being wasted,” Holdeman said. “I talked with an engineer who said the city could loop water lines. We’ve got water running down there and it looks like a big waste.”

“That’s why we’re replacing lines,” street superintendent Marty Fredrickson said.

“You’ll still have dead lines. Why not loop them?” Holdeman asked.

“That would be more cost, Bill,” Mayor Mary Olson said.

Mayfield explained that some water lines couldn’t be looped because they would intersect.

Holdeman then asked if this rate increase had anything to do with city officials asking for a new loader. A resounding answer was “no.”

If approved, the rate increase would not become effective until Jan. 1.

The council will review the issue at the next council meeting.

New loader purchased

The council approved the purchase of a Case loader for $144,372. Three bids were obtained — Volvo submitted a bid for $135,241 and John Deere for $124,934. City personnel had an opportunity to test drive all three pieces of equipment and liked the Case loader the best. The city currently has a Case loader.

One of the deciding factors for choosing the most expensive loader was the availability of parts. Straub International and Marion Auto Supply could provide the parts needed for the piece of equipment. Volvo parts would come out of Wichita. PrairieLand Partners of Marion would not be able to do all of the servicing of the John Deere-brand loader, Mayfield said.

Another deciding factor was the Case loader had full-time four-wheel drive; the other two did not.

The council approved the purchase, 3-1, with Kline voting against. He was in favor of purchasing the Volvo loader. Steve Smith was absent from the meeting.

Bids were sought from local banks for purchasing the loader but only one bank responded. Mayfield asked the council to wait until the next meeting to give him a chance to obtain more bids for financing. The estimated monthly payment for the Case loader would be approximately $2,668 for five years, Mayfield said. He also suggested making a $15,000 down payment from the equipment reserve fund. Payments would be divided among four city departments — electric, water, sewer, and streets and alleys — because all departments use the equipment.

Last modified Nov. 3, 2010

 

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