Hillsboro discusses rate increases for Peabody water
Hillsboro City Council discussed a plan to increase the cost of water sold to Peabody.
It cost the city $1.77 per unit to create drinkable water, currently Hillsboro is selling water to Peabody for $1.84 a unit.
“This is a business and we have to operate it like a business,” Hillsboro city administrator, Larry Paine, said. “We must make a profit we can’t go bankrupt, and right now the split between the cost of making water and what we sell it to Peabody for is too low.”
By contract, Peabody is exempt from paying on any debt for the Hillsboro water plant.
“The spread needs to be much wider,” council member Marlene Fast said, “because they don’t have to pay any debt from building the water facility and we do.”
The increase was discussed as an overall utility increase discussed by the council. No action was taken to increase rates, but Paine will bring more option in front of the council at the council’s next meeting Dec. 17.
Last modified Dec. 5, 2013