Plymouth residents could see an increase in water and sewer rates in 2021.
The Plymouth City Council members reviewed ordinances Monday night that would adjust water and sewer rates to raise revenues.
Eric Walsh from Baker Tilly reminded the council that the ordinances are a result of discussions of ways to raise revenues to help the General Fund budget. It is a response to lost revenue in property tax caps.
In the current water ordinance, he explained, money is collected in a hydrant rental fee through property taxes and it receipted in the General Fund. That money is then transferred to the Water Fund. Walsh said a new ordinance would change that.
“The option in front of you tonight is to take that cost and instead of it coming from property taxes and then be paid to the water utility, it would go directly on the water utility bills and be receipted directly into the water utility,” explained Walsh.
It would result in a hydrant rental fee, or fire protection surcharge, of $3.49 a month on a residential utility bill. It would be a larger fee for business and commercial utility bills, depending on the size of water meter. The General Fund would have $240,000 available for other expenses.
Walsh said a similar action would be taken on the stormwater potion of the bill where a $2.05 stormwater fee would increase to $5.00 per month on the utility bill.
Walsh stated, “The reason for that and how that and how that would help the General Fund is right now your General Fund is paying approximately $180,000 a year in stormwater/sewage costs. By instituting this raise in the stormwater fee, you can move those costs out of the General Fund to the Sewage Works and this fee would pay those additional costs.”
Walsh said that would free up about $200,000 in the General Fund.
Both utilities have been subsidized by the General Fund for decades.
The total increase a residential customer would see on the utility bill would be $6.44 per month if both ordinances are adopted. The first readings of the ordinances occurred Monday night. More information will be given to the council members concerning these fees in comparable areas in the state. Walsh said the city is below the state average in these fees, but more statistics will be looked over prior to the second and additional readings of the ordinances at the council’s next meeting.
