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It appears that utility rates in Hannibal - electric, water and sewer - will be going up. Rate hikes were included in the proposed budget approved by the Hannibal Board of Public Works Board during its meeting Wednesday afternoon at city hall.
An increase of 5 percent in residential electric rates is planned. The budget includes 3 percent hikes for both water and sewer in all rate classes.
In a memo to the board, Robert Stevenson, BPW general manager, said the rate change details will be formally proposed in May.
Steady rate increases in the electric department have been seen in recent years. Beginning July 1, 2006, electric rates were raised every six months. The last increase occurred on Jan. 1, 2009, and was for an average of 38 percent.
The city’s last water rate increase (5 percent) came on July 1, 2009. That also was the last time the sewer rates were adjusted (15 percent).
The additional revenue will be used for an assortment of projects in fiscal year 2010-11, which begins July 1.
Some capital improvements are now planned at the Indian Mounds substation, which is the city’s oldest substation. Some circuit breaker replacements will be taking place there.
The BPW will also be undertaking a major effort to replace poles and wiring in some residential neighborhoods where existing equipment is now approximately 70 years old.
The additional revenue in the water department will be used to provide a second water line to the city’s South Side. At one time three water lines served that part of the community, but two of the redundant lines were washed away by floods in the early ‘80s. It was noted during Wednesday’s meeting that if something were to happen to the existing line that water would have to be trucked to that side of the city for months.
In the year ahead the BPW plans to “get more aggressive with needed water main replacement work.” To save money, BPW personnel rather than a private contractor will be performing the work.
“Leaking water mains account for losses of treated water from our system of about 25 percent, which is unacceptably high,” wrote Stevenson in the memo.
In the sewer department, funds will be used to purchase a new alarm system at the wastewater treatment plant. According to Stevenson, that system will be the first step in eventually automating plant operations which will reduce the hours that the facility will need to be staffed.
Sewer and water funds will be used to buy a dump truck and backhoe allowing the BPW to begin replacing water mains, and old and failing collection mains.
“The federal EPA has warned us they intend to become more aggressive themselves as they enforce their rules related to inflow and infiltration,” wrote Stevenson. “We must begin replacing our leaking infrastructure or face serious penalties in addition to the cost of replacement.”
Included in the budget is almost $450,000 for upgrades to the BPW’s aging computer system and for part of the cost of a new billing system. The current billing system, which is approximately eight years old, is not compatible with the BPW’s meter reading system.
The budget, which does not include a salary increase, was characterized as “adequate” by Stevenson.
“We are paying down debts and adding a modest cash reserve. We are investing in some critical areas of reliability and trying to reduce pipe leakage as economically as we know how. We are holding rate increases to amounts below normal cost of living increases,” he said, noting that even after the rate increases Hannibal’s residential electric rates will still be among the lowest in Missouri. “This budget fails to address things like wages, aging fleets and poor facilities. These and similar items must be deferred until future years or until sales increase.”
It appears that utility rates in Hannibal - electric, water and sewer - will be going up. Rate hikes were included in the proposed budget approved by the Hannibal Board of Public Works Board during its meeting Wednesday afternoon at city hall.
An increase of 5 percent in residential electric rates is planned. The budget includes 3 percent hikes for both water and sewer in all rate classes.
In a memo to the board, Robert Stevenson, BPW general manager, said the rate change details will be formally proposed in May.
Steady rate increases in the electric department have been seen in recent years. Beginning July 1, 2006, electric rates were raised every six months. The last increase occurred on Jan. 1, 2009, and was for an average of 38 percent.
The city’s last water rate increase (5 percent) came on July 1, 2009. That also was the last time the sewer rates were adjusted (15 percent).
The additional revenue will be used for an assortment of projects in fiscal year 2010-11, which begins July 1.
Some capital improvements are now planned at the Indian Mounds substation, which is the city’s oldest substation. Some circuit breaker replacements will be taking place there.
The BPW will also be undertaking a major effort to replace poles and wiring in some residential neighborhoods where existing equipment is now approximately 70 years old.
The additional revenue in the water department will be used to provide a second water line to the city’s South Side. At one time three water lines served that part of the community, but two of the redundant lines were washed away by floods in the early ‘80s. It was noted during Wednesday’s meeting that if something were to happen to the existing line that water would have to be trucked to that side of the city for months.
In the year ahead the BPW plans to “get more aggressive with needed water main replacement work.” To save money, BPW personnel rather than a private contractor will be performing the work.
“Leaking water mains account for losses of treated water from our system of about 25 percent, which is unacceptably high,” wrote Stevenson in the memo.
In the sewer department, funds will be used to purchase a new alarm system at the wastewater treatment plant. According to Stevenson, that system will be the first step in eventually automating plant operations which will reduce the hours that the facility will need to be staffed.
Sewer and water funds will be used to buy a dump truck and backhoe allowing the BPW to begin replacing water mains, and old and failing collection mains.
“The federal EPA has warned us they intend to become more aggressive themselves as they enforce their rules related to inflow and infiltration,” wrote Stevenson. “We must begin replacing our leaking infrastructure or face serious penalties in addition to the cost of replacement.”
Included in the budget is almost $450,000 for upgrades to the BPW’s aging computer system and for part of the cost of a new billing system. The current billing system, which is approximately eight years old, is not compatible with the BPW’s meter reading system.
The budget, which does not include a salary increase, was characterized as “adequate” by Stevenson.
“We are paying down debts and adding a modest cash reserve. We are investing in some critical areas of reliability and trying to reduce pipe leakage as economically as we know how. We are holding rate increases to amounts below normal cost of living increases,” he said, noting that even after the rate increases Hannibal’s residential electric rates will still be among the lowest in Missouri. “This budget fails to address things like wages, aging fleets and poor facilities. These and similar items must be deferred until future years or until sales increase.”
