The water and sewer rates could be going up soon in the Town of Bremen.
Jeff Rowe from Baker Tilly presented the Bremen Town Council members Monday night with information from a rate study that would result in increases to consumers.
The cash position in the water utility is still healthy while operating disbursements are less than the budget. The town is meeting cash reserve requirements with an outstanding bond, but in order to keep up with projects in the next five years, Rowe suggests a rate increase.
The $6.04 increase would be phased in over two phases. The first increase would be $3.40 to begin July 1, 2021, while the second increase of $2.64 would occur July 1, 2022.
Rowe said the sewer utility did not fare as well as the water utility over the last few years and has experienced a declining trend when it comes to cash reserves. In order to make up $365,300 in additional revenue to make up a shortfall, a rate increase of $8.38 is proposed.
The rate hike would be phased in over two phases just like the water utility. The first increase would be $4.60 to begin July 1, 2021, while the second increase of $3.78 would take effect July 1, 2022.
Even with the increases, the utility bills for both water and sewer in the Town of Bremen are well below the state average.
There were no decisions made Monday night. An ordinance regarding the rate increases would need to be considered and a public hearing scheduled. The public hearing has not been scheduled as of yet, but if the council chooses to implement the increases in July, a public hearing would need to be set in April or May.
