York OKs water, sewer rate increase

After debating the fairness of its water and sewer rates, the York City Council gave preliminary approval to an increase that will cost typical customers less than $5 a month.

The council approved a 5 percent hike in water and sewer rates and a $3 increase in the $21 monthly base rate. That would increase the monthly bill for a typical customer who uses 5,000 gallons of water by $4.80, said City Manager Charles Helms.

The council also approved a $7.1 million general fund budget with no increase in property taxes or fees. The water and sewer budget, which includes the proposed fee increases and was approved in the same vote, is $3.4 million.

Council member Denise Lowry, the only council member to vote against the budgets, questioned whether the water and sewer rate structure is fair, noting that it poses the same base rate and usage fee on residents and businesses.

“I’m not sure raising the base rate is the best, most effective, for the people,” Lowry said. “As council members, it’s our responsibility to look at other ways, and to be creative.”

Lowry said she believe the city should examine its water and sewer rate structure and consider whether businesses or schools and other large-volume users should bear a greater burden of the cost than residential users.

A public hearing and a second and final council vote on the city budgets, including water and sewer rates, is scheduled for 6 p.m. Sept. 15. The new budget year begins Oct. 1.

Helms said the operating budget includes a new firefighter, to be hired in January, which will improve overnight staffing at the York Fire Department.

It also includes an annual 2 percent cost of living raise for employees, he said. He said the city’s gasoline costs are lower due to a sharp decline in fuel costs.

Lowry said she’s concerned about higher water and sewer rates because several residents who live on fixed incomes approached her with concerns.

However, council member Bill Miller said many small businesses use little water. He said they shouldn’t pay more just because they are a business.

Helms told council members that he would examine the rate structure, but that it would take some time because of the need to compare different water meter sizes.

A three-quarter-inch meter is the typical size for residential customers, he said, but schools and many businesses have larger meters.

The York school district and the Moss Justice Center are the city’s largest water customers, Helms said.

If the city were to change those rates, Helms said, it should give some advance notice to the school district and the county, both of which have already set their budgets for the coming year.

Helms said many other municipalities base their rates on the size of the customer’s water meter. Some cities, Helms said, allow the customer a certain volume of water with the base rate before the water usage rate kicks in.

Council member John Shiflet said the city shouldn’t put a greater financial burden on York public schools by approving a significant increase in those rates.

“They are already struggling because of Act 388,” Shiflett said, referring to South Carolina’s property tax reform. “We can’t make theirs exorbitant.”

Helms said the water and sewer rate increase was needed because of increases in the cost of bond repayments, for water and sewer improvements, which escalate over time. He also said electricity costs are higher.

He said the proposed fee increases would generate around $220,000 in revenue to cover those added costs.

This story was originally published September 2, 2015 at 5:24 PM with the headline "York OKs water, sewer rate increase."