FREEBURG — Several Freeburg property owners attended the Board of Trustees meeting on Tuesday, Sept. 9, to protest the increase in water and sewer rates.

Trustees approved an increase in the water and sewer rates for all residents and commercial customers at the July meeting. They also changed the billing for apartment buildings, requiring that each apartment be charged the minimum usage fee, instead of the minimum usage fee being charged per meter. Most apartment buildings in Freeburg only have one meter.

“I completely understand that the village has to have an increase in the water rates, especially with Hilke’s Ice moving out of town, and we’re more than happy to pay a 30% increase or even more than a 30% increase, but our water bills have gone up 425%,” said property owner Jacques Wieberg. “The people who rent our apartments are a part of the community, too. I’m here basically to stand up for them because whatever cost I do have to pass on to them, they are going to have to pay in increased rent.

“It’s not really fair to treat these people like second-class citizens,” Jacques Wieberg continued. “They are more than willing to pay a 30% increase. They just wanted to be treated like everyone else is being treated, but for them to have to pay more, it’s not treating them as fairly as everyone else in town.”

Wieberg showed trustees his August bill, which totaled $633.39. His bill for July had been $142.41.

Mayor Darryl Haller asked Wieberg how many apartment units he had in his building.

“What defines a unit?” Wieberg answered, then argued with the trustees over the definition of an apartment for several minutes. “There are 12 apartments there, if that’s what you are asking.”

Property owners continued to argue with trustees about the definition of an apartment and a physical address.

“There’s no real point in playing semantics here,” said Village Attorney Nathan Nickolaus. “We all know what an apartment is.”

“You must be an attorney,” Wieberg said.

“I am, and I think everyone knows what an apartment is,” Nickolaus said.

“Is it considered commercial or residential property?” Wieberg asked.

“It depends on who is classifying it,” Nickolaus replied. “I would consider it a multi-family residence.”

“I don’t understand how I have a building with four units in it and I’m getting four different charges,” said property owner Chris Schnieders. “A commercial building with 10 times the size, 100-plus employees, and 10 to 20 bathrooms is using more water than my buildings, and I’m paying more.”

“The village can bill stuff any way they want,” Nickolaus said. “The village can come up with 100 different ways to structure things.”

Nickolaus went on to explain that typically, commercial customers are billed at a different rate because they use a larger volume of water.

“No one else in town pays a base fee,” Wieberg said.

“Every house has a basic minimum fee plus usage,” Nickolaus said. “The base fee is ideally designed for someone who doesn’t use a lot of water …”

“What is the base fee?” Wieberg asked, interrupting the attorney. “Can we define what the base fee is?”

Nickolaus asked if he could finish making his point.

“The base fee is how much it would take to provide services and have the pipes available, whether anyone uses water or not,” Nickolaus continued. “That’s kinda what the base fee is. How that is priced is up to the village. But to be fair, each residential unit should pay the same base fee, and that’s what they are trying to do. You are not being treated as second-class citizens; they are really bringing them up to be treated like everyone else is being treated.”

“No,” Wieberg responded.

“Each of our buildings is approximately 2,000 square feet with four units and one water meter,” property owner Tori Schnieders explained. “The units have one person living there. If you look at it, it’s no different than a 2,000 square-foot house with four people living in it. Our units don’t have washing machines or dishwashers. We’re going to have to increase rent by $50 for our senior citizens, who are only taking showers and washing their dishes.”

Nickolaus said that he understood what Schnieders was saying, but that she was confusing the base fee with usage.

“There are lots of houses that may be 2,000 square feet and only have one person living in them, and they probably only pay the base fee,” Nickolaus said.

Water Clerk Cindy Struemph explained that the base fee was $18.14 per month for water and $18.14 per month for sewer and included up to 2,000 gallons of water usage.

“I think a reasonable and fair compromise is to get charged per building,” Chris Schnieders said. “I don’t know why we are singling out the units inside the building when massive commercial properties get charged less fees. I am being charged four base fees for one building.”

“If you build that building today, the village would require you to put in four separate meters,” Nickolaus said.

“But the building has been there since 1976,” Chris Schnieders countered.

Tori Schnieders asked if property owners could request that the village put in separate water meters for each unit.

Trustees agreed that it was an option.

“But you guys have to put the meters in; that is not the village’s responsibility,” said Mayor Darryl Haller.

Wieberg explained that if the village of Freeburg installed the water meters, it could give them up to 10% return on investment.

“So wouldn’t it be up to you guys to put these meters in to make that money?” Wieberg asked.

“Right now, the water is coming off the main to one meter. If you split that and put four meters in, it’s not going to do you any good because the building is not plumbed for the separate meters,” said Nickolaus.

“The meter I have is sufficient for what everyone in my building is using,” Wieberg said.

“In terms of capability, absolutely,” Nickolaus replied. “It’s a question of how to bill it.”

Nickolaus explained that if the village elected to charge the apartment owners less money, they may have to increase the rates for other residents to make up for the loss of revenue.

“I understand that you don’t like the way it is being billed,” Nickolaus said. “You have every right not to like the way it is, but if they reduce your rate, you have to understand that someone else’s rate may have to be increased. The water system has to pay for itself.”

“You’re asking me to pay an extra $6,000 per year,” Wieberg said.

“It would have been a $30 minimum for any other resident in town (before the rate increase),” Mayor Haller said. “In reality, your people were getting water and sewer for $11.80 per month, and everyone else in town was paying $30 per month.”

Wieberg again complained that he was being billed unfairly.

“I understand what you guys are complaining about, and it’s a legitimate complaint, but you’re getting lost in the usage,” Nickolaus said.

“You can’t charge a minimum fee and then charge usage on top of that,” Wieberg argued.

“Yes, you can,” Nickolaus replied.

Wieberg asked to see a copy of the ordinance.

“I had the same situation in Belle,” Trustee Brad Wieberg said. “We had 20 units and three water meters. We were in the same predicament you guys were in.”

“It sounds like we need to file a class action lawsuit,” Wieberg said.

“You’ll lose,” Nickolaus commented.

“We’ll find out,” Jaques Wieberg answered.

Trustee Wieberg went on to explain that the city of Belle offered to put in a separate meter for each rented property for a cost of $750 per unit. He said they chose not to have the meters put in because of the cost.

“When the village put these buildings up, they were satisfied with putting in one meter. If you want to make the change, you can pay to put the 12 meters in, but I’m not paying for them,” Jacques Wieberg said.

Mayor Haller said that none of the trustees or property owners were around when the buildings were built.

“We’ve owned them for over 18 years,” property owner Julie Wieberg said.

“Are we the only properties getting charged more than the amount on the meters?” Chris Schnieders asked.

Trustees said eight properties with rented apartments were being charged for each unit.

“So outside of the apartments, everyone else is getting charged a flat fee per water meter?” Chris Schnieders asked.

Trustees acknowledged that there had been a policy change, and anyone who was renting out apartments was being charged a minimum usage fee per apartment, regardless of the number of water meters the building had.

“Water and sewer rates are supposed to be billed fairly across the board, and I think it’s pretty easily defined; if you have a water meter, you get charged one fee for that meter,” Chris Schnieders said. “I don’t know why we are being singled out. It’s pretty hard to understand.”

“You are not being singled out,” Trustee Wieberg said.

Chris Schnieders asked why other residents in town were not being charged for an extra meter if they were running businesses out of their houses.

“They are being charged for the water usage,” Struemph said.

“But that’s not living quarters,” said Trustee Glenn Haller.

“But what defines a living quarter?” Jacques Wieberg asked again. “Everyone in town has a shop with a bathroom in it.”

“It seems like you are treating these eight apartment buildings differently than everyone else,” Tori Schnieders said.

“We don’t use any more water than anyone else,” Julie Wieberg added.

“You guys think you are getting singled out, but you were just getting a big break compared to everyone else in town,” Mayor Haller said, adding that several residents living alone in houses in the village are paying the minimum usage fee and not using 2,000 gallons of water.

“I should be allowed the minimum usage 12 times since I’m being charged 12 minimum fees,” Jacques Wieberg said. “I should be allowed 24,000 gallons. But you are billing me for 12 base fees and then charging me for the water that goes over the minimum usage fee of 2,000 gallons. If you want to charge me the minimum fee, I can understand that, but you can’t charge me the minimum fee and then charge me for going over 2,000 gallons of water.”

Trustees looked at Wieberg’s bill.

“In Belle, they do that exactly,” Trustee Wieberg said.

Nickolaus added that part of the problem was that Freeburg had a relatively high base rate.

“Our base rate is the third lowest in the state of Missouri,” Mayor Haller argued.

Nickolaus explained that there were all kinds of ways to change the rates to appease different people.

“You may do something that would help the average person, and then hurt someone who doesn’t use much water,” Nickolaus said. “What you guys have chosen to do is charge the base rate for each unit, which is really the standard. I know it is uncommon to you, and it is new to Belle, but most cities have this for apartments.”

“The sewer rate is going to have to go up more when the wastewater project goes through,” Mayor Haller said. “The Department of Natural Resources is going to require us to raise our rates.”

Mayor Haller went on to explain that the village was working hard to keep both water towers operating.

“We understand there has to be an increase, but we can’t pay 425% more,” Jacques Wieberg said. “It is too much.”

“That’s why I think a good compromise would be to charge per building, per meter,” Chris Schnieders said. “We would still be paying an increase.”

“But that’s what we were doing before,” Struemph said.

“What is the difference if we have four people living in a building or someone has four people living in a house?” Chris Schnieders asked.

“In Belle, we just paid for everyone’s water and sewer like we always had been, and everyone’s rent went up $25, and we ate $25,” Trustee Wieberg said.

“We bought the old retirement home, and we’ve tried to keep the rent as low as possible, and you’re saying this is non-negotiable, and we are just expected to raise the rent?” Chris Schnieders asked.

“We have people who can’t pay their rent now, and we’re probably going to have to evict them, and this is just going to add to that,” Tori Schneider said.

“I’ve spoken to an attorney, just because we went dove hunting together, and he said after looking over the bill, he doesn’t think you can double charge us,” Jacques Wieberg said.

“I appreciate your dove-hunting friend, but I’ve been practicing municipal law for 30 years, and there is a lot of case law on this. The village can charge half the town one rate and half the town another rate; they have the power to do it,” Nickolaus said.

“Obviously, Quaker gets charged differently than we do, and individuals get charged differently than people in apartments; we’re just trying to keep things fair,” Jacques Wieberg said.

“The apartments that are not separately metered could have a different usage rate, and the usage rate could be bumped up,” Nickolaus said.

“How do you justify that?” Jacques Wieberg asked. “That is no reason to charge them more; they are just people like you and I.”

“Ultimately, it’s a political decision,” Nickolaus said. “As much as you want to make it into something else, if they want to hurt one group more than another, they can do that.”

“We’re not out to hurt you,” said Trustee Wieberg. “We’re trying to make it equal for everyone. When our bills went up in Belle, they told us we didn’t have a choice because we didn’t live in Belle.”

“That probably didn’t make you happy,” Tori Schnieders said.

“We weren’t,” Trustee Wieberg replied. “We did the same thing you did. We came to the meeting and complained, and it went nowhere.”

“When Belle passed their ordinance, there were a lot of people unhappy,” Nickolaus agreed.

Tori Schnieders asked what the cost was of adding a water meter for each apartment.

“$1,000 per meter,” said Utilities Supervisor Doug Hamacher.

“But we have an ordinance that states that the property owner is responsible for the bills,” Struemph said.

“Then that would be worthless to us,” Jacques Wieberg said.

“When I look at it, your units were paying less for water and sewer per month than everyone else in town,” Mayor Haller said. “It’s not helping the cause. That is just the way it is.”

“We don’t want to see the increase; we want to pay one bill for one meter per month,” Chris Schnieders said.

Jacques Wieberg repeated his assertion that he was being billed double, and if the village was going to charge him a minimum usage fee for each apartment, they should allow him the minimum water for all the units and not charge for the water meter going over the minimum of 2,000 gallons.

“I know my bill is going up, but to pay it both ways seems unfair,” Jacques Wieberg said.” I should be allowed 2,000 gallons per apartment.”

“I have seen municipalities do that before,” Nickolaus added.

“Well, when we see this big of a price increase, we are going to stomp and scream,” Julie Wieberg said.

“But everyone has seen their bills go up,” Struemph said.

“But that means I’m going to have to charge the old lady in the apartment $50 more per month,” Chris Schnieders said. “That’s what it shakes down to. Do you want us to have to raise the rent?”

“I didn’t want to in Belle, but I did,” Trustee Wieberg said. “You guys want us to make your rates cheaper, and the next guy who comes in and builds 12 apartments wants a break, too.”

“But you are charging us twice,” Jacques Wieberg repeated.

“Everyone’s rates went up,” Struemph said again.

“The apartment buildings are being singled out,” Chris Schnieders said.

“I’ve looked at thousands of rate studies over my career, and anyway you split it, it benefits some people, and it hurts others,” Nickolaus said. “Ultimately, you have to generate enough money so that the system can pay for itself.”

“I don’t disagree with the idea that if there are 12 units, 24,000 gallons of water should be covered,” Mayor Haller said. “If we do it that way, everyone in town is treated fairly.”

“Except, if I only have eight of the 12 apartments rented out, do I call you and you drop my bill down?” Jacques Wieberg asked. “I don’t want to do that. I want to find common ground. We know that we have to pay an increase; we just want it to be fair.”

Mayor Haller said that the minimum usage fee would need to be paid for each apartment unit, whether the units were rented out or not.

“Look around at everyone in this town with a shop that has a kitchen and a bathroom in it,” Jacques Wieberg said. “How is that different than an apartment?”

“They don’t rent it out; no one lives in the building,” Trustee Wieberg said.

“What if one of my apartments is empty?” Jacques Wieberg asked. “No one is living there, so you can’t charge me for it. What is the difference?”

Jacques Wieberg told trustees that he did not plan on paying the water bill for the apartment until there were new meters put in.

“But they are still going to bill us, even if there are separate meters,” Julie Wieberg said.

Jacques Wieberg said he disagreed with that part of the ordinance as well.

“The reason we did that is because every time someone moved in or out, they had to pay a deposit,” Trustee Wieberg explained. “Most of the time, people weren’t paying their bill.”

Jacques Wieberg said that he would be willing to be responsible for the bill, but only if there was one meter. “I don’t think it is fair to bill some people more than others,” he added.

Mayor Haller noted that the village had advertised the rate change and had held a public hearing for people to come and ask questions and voice their concerns. The public hearing was held before the June board meeting.

“It would have been nice if we had all talked about this at the public hearing,” Mayor Haller said.

The owners all said that they weren’t aware of the public hearing since they lived outside of Osage County.

“Why wouldn’t you have just raised our rates by 30% like everyone else?” Jacques Wieberg asked. “Why was it such a big deal to all of a sudden stick it up our ass?”

“It wasn’t just you; everyone in town got a rate increase,” Trustee Wieberg repeated.

“I think everyone needs some time to think about this,” Nickolaus said. “We’re just going around in circles.”

The attorney suggested that since Jacques and Julie Wieberg were two months behind on their water and sewer bill, they needed to make a partial payment, and the village would agree to not shut the water off until the issue had been resolved.

“If the trustees change their minds, we’ll have to refigure things,” Nickolaus said.

“Then we’ll have to go back and refigure all eight of the apartment buildings,” Struemph said.

“Yes,” Nickolaus responded. “We are really going to need a new ordinance if you all decide to change anything.”

“Could you pay part of your bill because you are two months behind, just to make things fair?” Trustee Wieberg asked.

“I can pay all of the bill,” Jacques Wieberg said. “This is what I know from a business standpoint: if I had just paid this bill, nothing would have happened, but sometimes, when you stop the money, that’s when things get done.”

Ultimately, the Wiebergs paid part of the water and sewer bill for the apartment building, and the village agreed not to shut the water off until the issue had been finalized.

The issue was tabled until the next meeting on Oct. 7 at 6:30 p.m.

Remaining business will be presented next week.