By Becky Killian, Staff Writer
Salem officials are still considering a water rate increase but have delayed any decisions until a report is heard from the task force that is currently examining the utility. The matter was discussed during the Monday, June 10, meeting of the Salem Common Council.
The Council reviewed a rate study from Baker Tilly, the city’s consulting firm. It indicated the city is not in compliance with federal standards for a required cash reserve for the utility. The rate increases were presented in two options: the first was split into two phases, the second is a one-time rate increase.
The rates were calculated based on three years’ data with the aim to maintain the utility’s future cash reserve, fund the utility’s maintenance, and to pay salaries.
It was noted that inflation has increased the operating costs for utilities. Also, the city doesn’t qualify for grants or bonds because the ratepayers aren’t paying enough to maintain the utility.
Councilman Steve Crane asked if the decision should be made after the task force submits its report to city officials. His concern was echoed by Councilman Roger Pennington, who proposed the formation of the task force earlier this year.
Pennington said the task force meets weekly and is expected to return with recommendations to improve the water utility in about two months. Any decisions made about water rates taken before then would be “premature,” he said.
“I think it would be responsible to hold off,” Pennington said. He made a motion to table the discussion, followed by a unanimous vote that upheld the motion.
Councilman Dan Libka was absent from the meeting.
The city currently carries a $4 million debt for its sewer utility and $14 million for its water utility.
There does seem to be a consensus among the Council’s members that water rate increases are needed and inevitable.
In other business:
*The Council approved the survey of a section of Crown Hill Cemetery for use for green burials. Such burials forgo the use of traditional embalming chemicals and the use of any burial vessels that aren’t compostable.
*Two bids were opened for a city-owned parcel at 203 S. Mill St. It was noted that the property needs to be cleared of debris and the house needs repair to make it habitable. The bids were for $5,000 and $12,501. The bids were accepted for review.
