The Plymouth City Council members approved the second and third reading of ordinances that increase water and sewer rates beginning with December consumption, billable in January.
A public hearing was held on the matter Monday night which mostly gathered public opposition. Many cited senior citizens with fixed incomes and the impact it will have on those that may find an approximate $130 additional cost per year too costly once all phases come to realization in 2019.
The average water and sewer users and rental property owners spoke out against the increases, including the owner of Zentis who will assume the title of largest water and sewer consumer in the City of Plymouth once Bay Valley Foods and Del Monte close their doors in about a month.
Zentis Owner Chris Siebenhaar explained that with 235 employees and internal competition within other production plants for business across the nation, they are doing what they can to cut costs to use revenue to further sell product. With these increases, he said the company will be forced to do what it takes to reduce water consumption and waste production to keep down costs so the city may not see the revenue stream the council members are expecting.
It was noted that the city is working diligently to find companies interested in filling the buildings that Del Monte and Bay Valley Foods currently occupy, but a timeline cannot be pinpointed as to when a company will begin any production work.
A few residents asked if the ordinance decisions could be delayed to see how revenues play out and revisit the proposal in June.
It was the opinion of Councilman Jeff Houin and Councilman Gary Cook to see if they could wait to see how things shake out in six months, but Utility Superintendent Donnie Davidson said that would put a strain on the cash reserves the city has been building over the last few decades which could prove costly to maintenance and other projects down the line. Councilmen Shawn Grobe, Don Ecker, Jr. and Bill Walters all expressed the need to move forward to keep up with the water and wastewater revenues.
After a lengthy public hearing and discussion on the matter, the council voted 4-3 to pass the water rate and sewer rate increase ordinances on second and third reading. Duane Culp, Don Ecker, Jr., Shawn Grobe and Bill Walters all voted in favor while Gary Cook, Shiloh Fonseca and Jeff Houin voted against the readings.
To review: During a special meeting held Monday, Oct. 30, the city council learned that with Bay Valley Foods and Del Monte closing at the end of year water and wastewater treatment revenue losses are imminent. To help bridge the gap, an ordinance outlining a one-time raise in the water rate of 12 percent to begin Jan. 1, 2018, was proposed. In addition, an ordinance detailing a three-phase wastewater rate increase was proposed. It would allow for a 10 percent increase in wastewater rates beginning Jan. 1, 2018, with another 10 percent increase on Sept. 2, 2018, and a third 10 percent increase in March of 2019.
According to Utility Superintendent Donnie Davidson, the average customer using 5,000 gallons per month will see an increase of $5.10 after the first phase that includes the water and wastewater increase. The same customer would see an increase of $2.72 as a result of the second phase of the wastewater increase and another $2.98 increase in the third phase of the wastewater increase.
If other companies can occupy the vacating businesses and produce similar water and wastewater treatment numbers, the third phase-in could be rescinded from the ordinance.
Discussion surrounding the ordinances can be heard this Sunday at noon on MAX 98.3 FM during the Maximum Impact program.
