Price of water going up

STAFF REPORT

Portales city councilors have approved a notice of intent for increasing water and sewer rates to pay for the city’s new wastewater plant.

Portales City Manager Sammy Standefer said Portales residents’ water/sewage bills will increase by $21 over the next two years.

It breaks down like this:

• $3 more, as of July 1, for water, and $8 more for sewage.

• Another increase of $3 for water and $7 for sewage will take effect July 1, 2016.

• Water rates for commercial businesses will increase to $5 as of July 1, while commercial sewage rates will increase to $9.

• The 2016 increase for commercial businesses will be $4 for water and $9 for sewage.

Councilor Mike Miller pointed out that the rates would return to normal after the wastewater plant is paid off in about 18 years.

City councilors praised city officials for returning to review numbers and working hard to lower utility increases for residents, which initially were projected to be $60 per month more.

Standefer said a public hearing will be held June 16 for Portales residents to share their thoughts on the new numbers.

The previous plan for increasing water and sewage rates was met with complaints from Portales residents at a public hearing held in January.

The rate increase is to help pay for the $24.5 million loan the city obtained to build its new wastewater treatment plant.

The city will have to pay $1.2 million per year over the course of 18 years to repay the loan. The projected date the city will have to make its first payment on the loan is January 2017.