City water rates could be rising

    The Clear Lake City Council gave its unanimous approval to the first reading of an ordinance which will raise rates for the city’s water and storm-water utility services.  
    Under the plan, in January 2009 the water base rate will increase by 18-cents; the water consumption rate will increase by five-cents; the storm water rate will increase by 25-cents.
    In January 2010, the rates will again go up by the same amount in each category.
    Clear Lake City Administrator Scott Flory told the Council the city has added annual Consumer Price Index (CPI) adjustments each year to water consumption and storm water utility rates, however, current rates are not sufficient to fund major capital improvement projects, operations, maintenance and debt service.
    Flory proposes staging the increases to prevent a sudden increase in rates for customers.  The plan would create an 8 percent increase over time.   The city has had no rate increases in the service, aside from CPI adjustments, since January 2003.
    Flory told the Council Clear Lake’s water rates remain among the lowest in the state, according to a water survey conducted by the City of Durant, Iowa.  Clear Lake’s proposed January 2009 rate of $16.53 for 6,000 gallon ranks 63rd among 79 municipalities surveyed with populations ranging from 56 in West Bend to 50,731 in Ames.  Ames ranked just above Clear Lake at $18.42 per 6,000.  Ellsworth, population 531, topped the survey list with a cost of $55.40 per 6,000.
    The second and third readings of the proposed ordinance will take place at the Council’s regular meetings May 5 and May 19.