W. Bountiful water rates to rise in April
by Becky Ginos
Feb 25, 2010 | 246 views | 1 1 comments | 3 3 recommendations | email to a friend | print
WEST BOUNTIFUL — The new mayor and city council members have had their hands full since taking office in January. Just like the rest of the country, West Bountiful is facing some tough economic challenges. Those problems have in turn, forced some unpopular decisions.

Over the last few months, the council has been slogging through facts and figures to find a way around raising water rates. When all was said and done — though painful — it was inevitable. The council voted to approve the rate increase at its Feb. 16 meeting.

The plan calls for a new base rate for residents of $63. Council member Valerie Shaw pointed out during discussion at a previous meeting, that West Bountiful’s water needs are unique. Large lot sizes, and distance between homes, drive up the cost of providing water.

City Administrator Craig Howe, pleaded with the council at the Feb. 2 meeting, that without an increase, the city would not be able to meet its obligation to the bond. The current rate only covered the principle, not the interest. He warned that without the additional funds, there would be no money to cover infrastructure costs.

After holding a public hearing and hours of discussion, the council approved the rate change to begin April 1.

In another effort to tighten its belt, the city also approved disbanding a 401(k) option for employees of the city. The city had been allowing workers who elected not to take insurance (medical, dental or life) to put the money saved into a 401(k) plan.

By doing away with the contribution, the city could possibly save as much as $140,000 a year. There was some concern that employees who had signed on considering the benefit as part of their compensation package might leave.

However, the council decided to eliminate the option to save much needed funds. The program will end March 1.
comments (1)
« jbehunin wrote on Friday, Feb 26 at 08:35 AM »
The problems with the city's water system have nothing to do with the declining economy. The problem is that for 20 years the city has not charged water users the full cost of maintaining the water system. As the infrastructure gradually wears out year after year (what accountants call depreciation) no funds were set aside to rebuild the system. Now as all the pipes are starting to wear out, the city will need to raise millions to replace the system. It is simply a matter of poor planning in the past.
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