April 20, 2018 – The Excelsior Springs City Council voted unanimously to increase sewer rates for Excelsior Springs residents. It was requested that the base charge be increased for customers within city limits from the current rate of $21.96 to $25, with the usage charge, per 1,000 gallons, increasing from $7.90 to $10.96. The increase for customers outside of the city limits are from a base charge of $33.07 to $37.50, with a usage charge increase from $11.80 to $16.04 per 1,000 gallons. The rate increase will go into effect on May 1, 2018.
Previous rate increases have been found insufficient to cover the increase in maintenance, operating and interest expenses needed, even as rates have increased steadily over the past decade. Base charges have increased by 514 percent, and consumption charges for city sewer services have increased by 296 percent in the past ten years.
Sewer Fund revenues have increased by approximately 19 percent per year, or a total of 191 percent over the past decade, driven by two factors. One, consumers reduce usage as bills increase to save costs, and secondly, some facilities have installed extra water meters to reduce the amount of sewer charges paid on water that is used in manufacturing, or by cooling towers, in an effort that is referred to as “extreme.” Furthermore, fixtures and appliances are increasingly efficient. And so, although sewer rates have continued to increase, those increases fall short of the funds needed to keep facilities maintained.
And while the rates have increased by an average of about 19 percent per year, the cash outlays have increased by an average of 32.2 percent per year.
Most of the increase in cash outlays can be attributed to interest expense, principal payments, maintenance and repairs, and utility expenses. According to a detailed report put forth to the City Council by Director of Administrative Services Steve Marriott, with the exception of maintenance and repairs, all of these increases can be directly attributed to issuance of bonds to construct the new mechanical sewer plant, as well as increases related to operating that plant.
“The increased maintenance and repairs expenses are driven by the fact that maintenance has been deferred for several years, meaning that we have to spend more now to try to keep pace with items that are breaking,” the report stated.
The rate increase needed to support the Sewer Fund was determined by running the 2018 budget numbers through a spreadsheet provided by the Missouri Department of Revenue. Including all of the fixed costs, such as debt service, to the base rate does push a larger portion of those charges onto the residential customers, while simultaneously benefitting commercial and manufacturing customers. Because of that, the City split some of the fixed costs between the base charge and the consumption charge in an effort to balance out the new rates.
Increased sewer costs may prove to be a financial hardship to some local residents.
“City staff is cognizant of the need for establishment of a program to aid lower income persons with their utility bill. We have been discussing this fact internally and with staff at the Good Samaritan Center,” the report read.
A vote to approve was made by Brent McElwee, seconded by Ambrose Buckman, and passed the City Council in a unanimous 5-0 vote on Monday, April 16.