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Show Contractors lobby against sewer hook-up rate increase By MARCELLA WALKER Several local contractors asked Pleasant Grove City Council Tuesday to not increase the sewer hook-up fees in order to encourage building in the community. In a public hearing to discuss raising sewer rates and hook-up fees, the contractors suggested that the present hook-up fee be lowered and that monthly customer rates be raised instead. The public hearing was held as a result of notification from the Timpanogos Special Service District that the four cities fees to the District would be raised by 15 per cent beginning April 1. In addition, the city operated the sewer system at a loss of about $16,000 last year. Mayor Holdaway noted that the sewer is expected to support itself as the city does not have the funds to subsidize it. The city engineer said he anticipates an-ticipates a shortfall of approximately ap-proximately $58,000 in the sewer budget this year. The city paid $334,000 to the Timpanogos Special Service District this year out of a total budget of about $492,000. The sewer fund contributes about $54,000 per year to the general fund for services ren dered such as auditing, collecting fees, attorney fees, etc. This leaves only about $100,000 .that the city has control over and it goes for salaries, equipment, etc. The users in Pleasant Grove presently pay $7.50 per month basic rate plus 50 cents per 1,000 gallons of water used. The rate is based on meter readings during the winter months when water is not being used for lawns. The average user pays about $10 to $12 per month for their sewer bill. , The city engineer has suggested that the basic rate be raised to $8.50 per month plus 65 cents per 1,000 gallons. He also recommends that the sewer hook-up fee be raised from $1,000 to $1,400. The rate increase would mean the average user would pay about $1.90 per month more than they are now. The raise in rates would not put the city out of line with neighboring cities rates. However, the hook-up fee increase would make Pleasant Grove highest next to Alpine. : One contractor said that he has several lots in Pleasant Grove but has not built on them because of the hook-up fees for sewer and water. .; Another contractor said that since there are many properties in Pleasant Grove just sitting because of the high hook-up fees, the city could encourage growth by raising the monthly rates a little more and not changing the hook-up fee, or better yet, by lowering it a little. Bill West, a contractor, stated that the total building permit fees in Pleasant Grove come to about $2,700 whereas the average in Utah County is $1,820. Alpine is the only one higher, he noted. He said that builders cannot continue to build here unless some help is given. He noted that building lot prices in the county are directly reflective of what the building fees are. If the hook-up fee were lowered to get the city nearer the average more people would build here and the difference would be made up. Stan Boyer asked if a study could be done to see what the actual impact im-pact is on a city when a new home is built. If the impact is great then perhaps the hook-up fee should be raised but if it is small then the city could consider taking money from the general fund in order to encourage en-courage growth. Councilman Dell Young said he would like to know what the neighboring cities are considering doing with rates in the near future. Many are contemplating raises and if they do Pleasant Grove might not be so far out of the ballpark afterall. The engineer noted that the city has to do something soon since the District's rates will go up in April no matter what. He said the increase in user rates most directly impacts the ones who are on a fixed income. Mayor Holdaway said that in years to come the cities using the Timpanogos Special Service Treatment Plant may have the lowest rates in the state because the plant was on line early and other cities will just be developing and paying for theirs. The council was asked to consider other rate increase proposals before the next meeting so that a decision can be made. These suggestions included leaving the hook-up fee at $1,000 and raising the basic rate to $8.50 per month and 72 cents per 1,000 gallons; or raising the base rate to $9 and 65 cents per 1,000 gallons. These suggestions would be a $2.65 per month increase to the average user or about $14 per month total on the average bill. |
