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Sewer and water dominates pressing issues in Lake Ozark
Board of Aldermen will hear public comment Feb. 9 about sewer rate increase
By J.B. Simpson/LakeExpo.com
Years of avoiding sewer and water issues have come to a head in the City of Lake Ozark. Stuck between a state mandate and the voting public, the Lake Ozark Board of Aldermen will have to make hard decisions about rate increases that will impact the pocket books of residents.
A consent judgment from the state requires Lake Ozark complete a series of sewer improvements over the next three years at a total estimated cost of $3.2 million. The city has already taken the necessary steps to secure the $844,000 to complete phase one, the installation of an early-warning system in 33 high-volume lift stations the city operates. However, there must be a public vote for the city to bond additional debt for the purpose of completing the balance of the state-mandated improvements.
The improvements, debt service and operating expenses are forcing the Board of Aldermen to raise sewer rates this year. The current business model's rate structure has had a negative cash flow since 2007 and threatens to wipe out the city's sewer cash reserves by 2013.
McClure Engineering, the firm hired to study and present the board's options, has recommended a base-rate increase of $5 in 2010, followed by a 25 percent increase in the flow rate beginning in 2013.
Currently the city charges residents a $15 base rate per month, plus $2.75 per 1,000 gallons of use. Commercials rates are $22.03 base and $3.50 per 1,000 gallons. The average residential customer using 4,500 gallons per month currently pays $27.38. The engineering consultant's recommendation would raise the monthly expense of the average customer to $35.38. The recommendation would also change the rate structure for condominiums from commercial to residential.
An open meeting for public comment about the sewer rate increase will be held at 6 p.m., Feb. 9. Absent any changes in the schedule, the Board of Aldermen is likely to begin taking action Feb. 23 with final action scheduled for March 9.
"This didn't just come about. This has been building up over an extended period of time," City Administrator Dave Van Dee said Jan. 26 at the Board of Aldermen meeting. "This board happens to be the board at the wrong place at the wrong time. They are the ones that have to step to the plate and make a very tough decision. Everyone needs to understand that it's time."
WATER
Within the next nine months, the city plans to connect to the 10-inch main by Paul's Supermarket, extend the line under HH, continue to the school and connect with the system serving the Strip. The $500,000 project is considered "short-term critical" by the city administrator and is awaiting financing from either the USDA or the State Revolving Loan Fund.
"It's really just a continuation of an improvement project that needs to be finished," Van Dee said.
It would create a continuous 10-inch main from the city's south-side water tower to Bagnell Dam.
During the Board of Aldermen meeting Jan. 26, Jeff Schug with McClure Engineering said under the current rate structure the city would hit the break-even point between 2013 and 2014 before cash flows begin to trace negatively.
The firm recommended keeping water rates consistent for the time being, but suggested the aldermen consider an update to the business model in 2011.
Currently, residential customers pay a $10.82 base rate, plus $5.96 per 1,000 gallons of usage. Commercial customers are charged $21.78 base and $5.96 per 1,000 gallons. The average residential customer using 4,500 gallons of water per month pays a bill of $33.75.
Subscribe To Lake AlertsA consent judgment from the state requires Lake Ozark complete a series of sewer improvements over the next three years at a total estimated cost of $3.2 million. The city has already taken the necessary steps to secure the $844,000 to complete phase one, the installation of an early-warning system in 33 high-volume lift stations the city operates. However, there must be a public vote for the city to bond additional debt for the purpose of completing the balance of the state-mandated improvements.
The improvements, debt service and operating expenses are forcing the Board of Aldermen to raise sewer rates this year. The current business model's rate structure has had a negative cash flow since 2007 and threatens to wipe out the city's sewer cash reserves by 2013.
McClure Engineering, the firm hired to study and present the board's options, has recommended a base-rate increase of $5 in 2010, followed by a 25 percent increase in the flow rate beginning in 2013.
Currently the city charges residents a $15 base rate per month, plus $2.75 per 1,000 gallons of use. Commercials rates are $22.03 base and $3.50 per 1,000 gallons. The average residential customer using 4,500 gallons per month currently pays $27.38. The engineering consultant's recommendation would raise the monthly expense of the average customer to $35.38. The recommendation would also change the rate structure for condominiums from commercial to residential.
An open meeting for public comment about the sewer rate increase will be held at 6 p.m., Feb. 9. Absent any changes in the schedule, the Board of Aldermen is likely to begin taking action Feb. 23 with final action scheduled for March 9.
"This didn't just come about. This has been building up over an extended period of time," City Administrator Dave Van Dee said Jan. 26 at the Board of Aldermen meeting. "This board happens to be the board at the wrong place at the wrong time. They are the ones that have to step to the plate and make a very tough decision. Everyone needs to understand that it's time."
WATER
Within the next nine months, the city plans to connect to the 10-inch main by Paul's Supermarket, extend the line under HH, continue to the school and connect with the system serving the Strip. The $500,000 project is considered "short-term critical" by the city administrator and is awaiting financing from either the USDA or the State Revolving Loan Fund.
"It's really just a continuation of an improvement project that needs to be finished," Van Dee said.
It would create a continuous 10-inch main from the city's south-side water tower to Bagnell Dam.
During the Board of Aldermen meeting Jan. 26, Jeff Schug with McClure Engineering said under the current rate structure the city would hit the break-even point between 2013 and 2014 before cash flows begin to trace negatively.
The firm recommended keeping water rates consistent for the time being, but suggested the aldermen consider an update to the business model in 2011.
Currently, residential customers pay a $10.82 base rate, plus $5.96 per 1,000 gallons of usage. Commercial customers are charged $21.78 base and $5.96 per 1,000 gallons. The average residential customer using 4,500 gallons of water per month pays a bill of $33.75.
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