Commission to consider BGMU rate hikes
Published 11:33 am Monday, December 15, 2014
The Bowling Green City Commission on Tuesday will consider raising water and sewer rates for Bowling Green Municipal Utilities customers over the course of the next four years, a move needed because of declining water usage.
BGMU is proposing an initial rate increase that would go into effect Feb. 1 and increases thereafter on July 1 of 2016, 2017 and 2018.
Commissioner Rick Williams, who serves on the BGMU board of directors, said the rate changes will allow BGMU to set aside more money for capital improvements to address aging water and sewer infrastructure.
“They’re creating a new rate structure,” he said. “The reason for that is to allow for the aging infrastructure that we have in our community.”
Proposed rates are based on a recent rate study, Williams said.
He said new rates seem reasonable and will be phased in over several years.
“I really hate to see anyone not prepare for the future and for the inevitability of the need that is going to exist,” Williams said.
The city ordinance would increase the base monthly customer charge for water from $3.20 to $4.80 for customers inside the city and from $4.48 to $6.72 for customers outside the city. The sewer customer charge inside the city would rise for $3.02 to $4.53 and the sewer rate for customers outside the city would rise from $4.32 to $6.35.
The volume charges for water would also rise for customers inside the city from $2.54 per ccf, or hundred cubic feet, for the first 20 ccf to $2.67, from $2.36 to $2.48 per ccf for the next 230 ccf and from $2.03 to $2.14 per ccf for more than 250 ccf.
The volume charges for water for customers outside the city will rise from $3.56 to $3.74 per ccf for the first 20 ccf, from $3.30 to $3.48 per ccf for the next 230 ccf and from $2.84 to $2.99 per ccf for more than 250 ccf.
The sewer rate volume charge inside the city would rise for $3.17 to $3.33 per ccf. The sewer rate volume charge for customers outside of the city would rise from $4.44 to $4.67 per ccf.
The average customer uses about 5,000 gallons of water a month – 6.5 ccf, according to Mike Gardner, manager for BGMU’s water-sewer systems division. Based on that usage, a bill for someone in the city using water and sewer would see the bill rise from $43.33 a month to $48.32, with a little more than 62 percent of the increase coming from the base charge increase.
“Over the past few years, with the usage of front-loading washers and other things, water consumption has declined,” Gardner said. “That’s a good thing but it means that revenue has also declined. So in order to cover our fixed cost … we chose to raise the base rate … on a recommendation of a rate consultant.”
Rates would also rise each July 1 between 2016 to 2018.
By July 1, 2018, the rates in place would include a water customer charges of $9.11 for customers inside the city and $12.76 for customers outside of the city and sewer customer charges of $8.61 for customers inside the city and $12.06 for customers outside the city, according to the ordinance.
Volume charges for water inside the city would be $2.99 per ccf for the first 20 ccf, $2.78 per ccf for the next 230 ccf and $2.39 per ccf for more than 250 ccf.
Volume charges for water outside of the city would be $4.18 per ccf for the first 20 ccf, $3.89 per ccf for the next 230 ccf and $3.34 per ccf for more than 250 ccf.
Volume charges for sewer inside the city would rise to $3.72 per ccf and for outside the city would rise to $5.22 per ccf.
The City Commission will also consider a measure to deal with heavy traffic near Hennessy Way.
Commission members will vote on accepting a bid of $408,334.27 from Scotty’s Contracting & Stone, LLC for the construction of a signalized access from Hennessy Way to Interstate Drive. The project will also include road widening and construction of turning lanes near the National Corvette Museum, according to a memo from Public Works Technician David Hehner.
The Kentucky Transportation Cabinet will reimburse the city up to $280,000 for the project, and Fruit of the Loom will reimburse the city $20,818.68 to cover the cost of work to realign their parking lot entrance as part of the project, according to the municipal order.
— Follow government beat writer Katie Brandenburg on Twitter at twitter.com/BGDNgovtbeat or visit bgdailynews.com.