City Council votes to raise water rates

Commercial and residential fees will rise to increase bond revenue.

By Kyle Daly

Published Jan. 23, 2009

Columbia residents shouldn't be surprised to find a slight increase in their future water bills. After all, they asked for it.

Columbia City Council unanimously voted Tuesday to amend a city ordinance specifying water rates for both residential and commercial users. The amendment increased all water commodity charges by 2 percent.

In November, Columbia voters approved a proposition that would give the city authority to issue $38.9 million in bonds to finance future water projects. In order to increase the bond revenue, water rates would have to increase.

The increase in rates allows the water utility to achieve a 1.5 percent revenue increase needed to finance these projects.

In November, it was projected that two successive 1.5 percent rate increases followed by four successive 5 percent rate increases would be needed to pay back the borrowed money.

"This is just the first piece of what we told the voters would be needed if the ballot issue was approved past November," City Manager Bill Watkins said.

The water projects will include replacing and upgrading Columbia's water mains, increasing water flow for fire fighting, and expanding the water supply capacity.

According to the amended ordinance, a resident living within city limits will pay an extra 4 cents per 100 cubic feet of water used, increasing the cost from $1.98 to $2.02. During the summer, the charge will increase from $2.772 to $2.828. This will increase the average monthly cost by about 28 cents.

Commercial water rates within city limits will increase from $1.83 to $1.867, and during the summer, $2.828 will be the charge for water usage above 80 percent of the customer's average usage during January, February and March.

At the council meeting, Water and Light Director Kraig Kahler explained to the public why commercial rates are lower than residential rates.

"Typically in the industry, the residential rates are a little bit higher than the commercial rates, because commercial typically use a lot more water than residents," Kahler said.

In September, Mayor Darwin Hindman appointed a committee to inform Columbia voters about the need to improve the water system. With the help of this committee, Proposition 1 was approved by 77 percent of Columbia voters.

In 2003, Columbia voters approved a water bond that financed the expansion of Columbia's water treatment plant and the addition of a water pumping station.