Meta plans water rate hike beginning Aug. 1

By Neal A. Johnson, UD Editor
Posted 7/19/23

META   — Meta aldermen are bound by ordinance to have a water rate study conducted every three years, and the board acknowledged that while it’s not popular, a rate increase is …

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Meta plans water rate hike beginning Aug. 1

Posted

META  — Meta aldermen are bound by ordinance to have a water rate study conducted every three years, and the board acknowledged that while it’s not popular, a rate increase is necessary as the city is in the hole by about $7,100. New rates will take effect on Aug. 1 for billing due on Sept. 1.

“We were hoping to have this done before this month,” said City Clerk Deidra Buechter.

Based on the report provided by the Missouri Rural Water Association (MRWA), Meta’s current minimum rate of $37.74 per month for the first 1,999 gallons, a tiered rate of $8.67, and other rates for 3,000 gallons ($46.41 per month) and 5,000 gallons ($63.75 per month) is generating approximately $54,049.62, which leaves the city down $7,120.38.

Buechter told aldermen they have three options, noting this does not include bond payments. “When we start repaying that bond, our water rates will change again.”

The first option is to leave the minimum rate at $37.74 for a 1,999-gallon, plus a tier rate of $8.67 and other rates for 3,000 gallons ($55.08 per month) and 5,000 gallons ($72.42 per month) would garner approximately $64,453.62, which would give Meta a surplus of $3,283.62.

Buechter explained the tier rate is applied for every 1,000 gallons of water used after the first 1,999.

Option two would lower the monthly minimum to $35. With a tier rate of $10 and other rates for 3,000 gallons ($55 per month) and 5,000 gallons ($75 per month) would generate approximately $64,105.67, giving Meta a net income of $2,935.67.

A third option would increase the monthly minimum charge to $45, plus a tiered rate of $9 and other rates for 3,000 gallons ($72 per month) and 5,000 gallons ($90 per month), generating approximately $63,095.10, which would create a positive income of $1,925.10.

“So after looking at all of these, I recommend you go with option two, just because it is a lower minimum than what we’re charging now, but a higher tier rate.”

Most of Meta’s minimum customers don’t use nearly 1,999 gallons. “Most of our minimum users are using 1,000 or less,” said Buechter. “This would give them a cheaper rate, overall, and a cheaper rate from our current minimum.”

She added that the tier rate is set to increase this month, which will cost users about $9. Buechter said she doesn’t understand the benefit of the first option.

“Because we are a non-profit, I wouldn’t recommend going with that one anyway because you’re making more money, and water is not something where make a profit on,” she said. “So, as your water clerk and backup operator, I recommend option two or option three. It’s up to you what you want to do; I think it’s important that you talk about it. And if you choose to do something off of this list, then we can write up the ordinance and have it ready for next month.”

Alderman Otto Wankum likes option two. “For the people who don’t use as much water, their charges wouldn’t be quite as much as those who use a lot of water,” he said.

“I’m one of those people who use a lot of water,” said Alderman Ivie Helton. “But I don’t like bills going up. Our property taxes went up, and everything else has gone up exponentially. If we go with option two, that lowers the current rate for people that don’t use a lot of water, which are typically going to be either older citizens or single citizens that need the break more. It still brings us back to where we need to be. I agree with option two as well.”

Buechter reminded Aldermen that customers would see a 2% increase on the Aug. 1 bill per city ordinance, with the new rates beginning on Aug. 1 for the bill to be paid on Sept. 1.

Aldermen agreed to go with option two.

In other business, aldermen agreed to hold its fireworks show on Labor Day evening at the park. The Fourth of July event was postponed due to very dry conditions.

WATER/TRASH SALES

* Meta recorded $5,353.86 in water sales, with $1,246.66 collected for trash service, $280 in late fees, and $179.87 collected in sales tax. Total charges were $7,130.39, with a previous balance of $2,520.45, and payments were received in the amount of $7,368.95, leaving a balance due of $2,281.89.

* Clerk Buechter reported that 559,942 gallons of water were pumped during June, with 370,956 gallons sold and 188,986 gallons of water lost, or 33.75%. She said Flynn Drilling assessed the check valve issue. The tower was overflowed, and the pump shut off overnight. Buechter said it was a weak flow but not enough to create backflow.

“The setup is not ideal at the pump house,” she added.

Buechter noted a hydrant near the church is leaking, and the city is waiting for MRWA to repair it.

She also recommended Aldermen go with Clow Valve Co. when it comes to buying new hydrants. Buechter said the company replaced the innards of the hydrant at the park and did not bill the city for about $1,500. “They have a representative close who can make repairs pretty quickly,” she added.

Buechter also said that the city’s water project includes replacing all of the town’s hydrants, and she believes Clow Valve is the best company. 

FINANCIAL NEWS

* In her regular monthly financial report, Treasurer Karla Buechter noted income/deposits of $24,038.96 and debits of $38,429.71 for a balance on hand as of June 30, totaling $489,205; the money market balance was $141,266.97, and certificates of deposit total $50,429.75 and $126,487.39, give the city total funds on hand of $807,389.11.

Remaining business will be presented next week.