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Arma City Administrator Tim Schook told the Arma City Council Monday night that the city may need to increase water rates by as much as 35 percent to break even in that department.
Schook said last month that the city's various departments are operating at a fairly even cash flow, with the exception of the water department. Expenditures in the city’s water department in 2010 are estimated at $288,000, while projected income is at $216,000.
During Monday’s meeting, Schook said that after some preliminary number-crunching, “I can’t get around a 35 percent increase.” And that increase, should it be passed, would be across the board. As it is set up now, each consumer of water pays a certain fee for 2,000 gallons of water used. After 2,000 gallons, consumers are charged by usage.
No action was taken on the matter Monday evening. Council will continue to discuss the rate increase at a future meeting.
The city had a similar issue with its sewer department earlier this year. In March, the city council approved an ordinance that added a $1.50 charge per 1,000 gallons of water usage - the added fee was split into two $.75 increases - to the city's flat sewer rate of $15 per month. Schook said at the time that the increase was necessary to begin to close the $46,000 gap between sewer department revenue and expenses.
Also at Monday’s meeting, Schook announced that Gary Silvers has decided not to purchase the home that sits on the northwest corner of U.S. 69 and E. 640th Street, the area the city hopes will one day be a thriving residential neighborhood. Silvers, a former Arma resident, had expressed interest in buying the home for $75,000 with intent of living there and operating a small car sales business from the home.
According to Schook, Silvers backed out after learning that plans are in place to move U.S. 69 west of that area. Schook said the city will continue to actively market the house. Anyone interested in buying the house should call Arma City Hall.
The sell of the home for $75,000 would cut in half the $150,000 loan the city took out to buy more than 30 acres of land in that area.
Arma City Administrator Tim Schook told the Arma City Council Monday night that the city may need to increase water rates by as much as 35 percent to break even in that department.
Schook said last month that the city's various departments are operating at a fairly even cash flow, with the exception of the water department. Expenditures in the city’s water department in 2010 are estimated at $288,000, while projected income is at $216,000.
During Monday’s meeting, Schook said that after some preliminary number-crunching, “I can’t get around a 35 percent increase.” And that increase, should it be passed, would be across the board. As it is set up now, each consumer of water pays a certain fee for 2,000 gallons of water used. After 2,000 gallons, consumers are charged by usage.
No action was taken on the matter Monday evening. Council will continue to discuss the rate increase at a future meeting.
The city had a similar issue with its sewer department earlier this year. In March, the city council approved an ordinance that added a $1.50 charge per 1,000 gallons of water usage - the added fee was split into two $.75 increases - to the city's flat sewer rate of $15 per month. Schook said at the time that the increase was necessary to begin to close the $46,000 gap between sewer department revenue and expenses.
Also at Monday’s meeting, Schook announced that Gary Silvers has decided not to purchase the home that sits on the northwest corner of U.S. 69 and E. 640th Street, the area the city hopes will one day be a thriving residential neighborhood. Silvers, a former Arma resident, had expressed interest in buying the home for $75,000 with intent of living there and operating a small car sales business from the home.
According to Schook, Silvers backed out after learning that plans are in place to move U.S. 69 west of that area. Schook said the city will continue to actively market the house. Anyone interested in buying the house should call Arma City Hall.
The sell of the home for $75,000 would cut in half the $150,000 loan the city took out to buy more than 30 acres of land in that area.
