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SALEM -- Increases to both the minimum water bill and water usage rate are being recommended to the Salem Utilities Commission to meet daily operation costs, maintenance costs and required system upgrades both now and in the future.
No decision has been made on the recommendation, but according to Joe Lawrie, asset management team leader for the Rural Community Assistance Program, the increased cost for the average residential user in Salem would equate to an additional $10 per month. Users outside the city face an upcharge of 50 percent to their costs.
All involved during the work session Thursday morning stressed that the numbers discussed only affect the water side of the equation, not the sewer. Sewer rates were already increased earlier this year.
"It's not a decision we make lightly," Commission Chairman Bob Hodgson said.
He said the findings will be discussed further in a couple weeks when another work session is held, this time with Benesch, the engineering firm working on the water treatment plant improvements, to look at funding options for the multi-million dollar project currently estimated at $14.5 million.
The plan is for the increase to start in January, something the commission has indicated for months.
The current cost for water for city customers is $10.30 for the minimum or first 200 cubic feet of water and then $2.10 for each additional 100 cubic feet of water. According to Lawrie, the typical residential water bill is for 650 cubic feet or 6.5 ccf, which totals $19.30.
Under the proposal, the minimum for the first 200 cubic feet of water would increase by $9 in the first year, meaning the minimum would total $19.30. The rate would increase by 5.5 percent in the first year, which he estimated at an additional 22 cents per 100 cubic feet, bringing the average residential customer's cost to $29.27 per month for water, dependent on usage.
The study also proposed increases to the base of $7 in 2023 and $5 in 2024, with rate increases of 5.5 percent each in 2023, 2024, 2025 and 2026. For the next five years, 2027-2031, the study suggested rate increases of 3 percent each year, but no increase to the base.
The rate study took into account many factors, including typical yearly costs, fixed costs vs. variable costs, improvements needed, maintenance costs, projected future costs, related to both the water distribution system and the water treatment plant on Gamble Road. Money to build up savings was also built into the study.
Wayne Cannon, senior rural development specialist for RCAP, who helped Lawrie do the water rate study, explained that grant providers look at the affordability index for water and unfortunately, Salem's historically low rates put the city at a disadvantage for consideration for outright grants for projects. Even with the proposed increases, the city's chances won't be great for grants.
Hodgson noted the water plant was last updated in 1992 and some of the equipment is original to the plant from the 1950s.
"What we're doing is just trying to play catch up," he said, noting that besides the equipment and plant needs, new state and federal requirements come into play, too. "We can't do it with the equipment we have now."
Cannon said that "politically it's going to be painful, but where you're at, it's pretty much unavoidable."
"You're still going to have rates that are significantly lower than your neighbors," Cannon said.
Perry Township Trustee Jim Armeni, who attended the work session, said he's been getting phone calls regarding the outside rate and questioned if there's any consideration for lowering that. Outside rates are 50 percent higher than the rates for city customers. Outside water customers include those in the unincorporated area of Perry Township with city water, along with Washingtonville and Leetonia.
Councilmen Bob Merry and Dennis Plegge also attended the meeting, with Merry saying the commission needs to do a public relations campaign to inform the citizens of the reasons for the rate increases. He also said put the onus on the people who didn't do what needed to be done years ago.
Even with the problems at the plant now, Hodgson said the water quality is excellent.