Palmer water rate hike on council agenda

September 12, 2006

By LEILA KHEIRY

Frontiersman

A significant hike to water and sewer rates is on the agenda for Tuesday's Palmer City Council meeting.

The council will meet at 7 p.m. at Palmer City Hall, 231 W. Evergreen Ave., Palmer .

The resolution calling for a two-pronged rate hike stems from an analysis of the city's water and wastewater utility service rates, according to the council's meeting packet. The city hired Anchorage consulting firm Honchen & Uhlenkott Inc., to complete a revenue requirement study. According to the resolution, the firm recommended the city increase its water rates by 19.4 percent, and its sewer rates by 46.2 percent.

According to the firm's June report, the city's water utilities are operating at a deficit of more than $160,000.

For sewer utilities, the revenue deficit is more than $251,000.

If the council approves the resolution, the increases would be implemented in two phases. Half would take effect on Oct. 1, and the rest would kick in on Oct. 1, 2007.

According to the resolution, monthly water rates through 2007 would be $12.90 for up to 5,000 gallons, and the sewage fee would be $17.20.

An additional 26 cents for water and 34 cents for sewer would be charged for every 100 gallons over the 5,000-gallon base amount.

Rates after October 2007 would increase to $14 a month for water and $20.45 for sewer for 5,000 gallons or less, plus an extra 28 cents for water and 41 cents for sewer for each additional 100 gallons.

The rate hike originally came before the council on July 25, but council members postponed action on the resolution twice.

A time for public comment is scheduled during the meeting.

Also on Tuesday, the council will consider:

€ Two rezoning ordinances. The first would rezone a lot on Promissory Point from single-family residential to industrial. According to the ordinance, the owner plans to use the property as a contractor's equipment yard. The second rezone request would switch seven lots in Arbor Estates subdivision from public district to single-family residential. According to the ordinances, the city's planning commission recommends approving the requests.

€ A $250 donation to the city of Hooper Bay for disaster relief. The donation is part of a statewide municipal effort to help the residents of the fire-ravaged community, according to information in the meeting packet. The city of King Cove started the donation drive, and challenged other state municipalities to match its donation.

€ An ordinance that would implement taxes on travel agencies' service fees. The fees have been exempt from city taxes. Travel agents' commissions would remain exempt, according to the ordinance, as would sales of air, train, cruise and bus travel, car rentals or accommodations where the service takes place outside of the city.

€ A resolution appointing election officials for the Oct. 3 municipal election. Precinct 13-025 officials would be Geraldine Keeling, Anita Chase, Eve Hermon, Cindy Medberry and Jo Weller. Precinct 13-027 officials would be Joanna Baugh, Rebecca Wetherell, Carol Ward and Katherine Vanover. The canvass board would be Cindy Medberry, Shawn Osborne and Elaine Shields.

€ A resolution accepting $580,064 from the Alaska Division of Homeland Security and Emergency Management to purchase public safety communications equipment.

€ An action memorandum approving $155,000 to construct a communications shelter building to house new public safety communications equipment.

€ A resolution accepting a $49,555.34 grant from the Mat-Su Borough to help pave East Eagle Avenue from the Glenn Highway to the Alaska Railroad.

Contact Leila Kheiry at 352-2270 or at leila.kheiry@frontiersman.com