June 28, 2019
By: Dwayne Page
The Alexandria property tax rate will remain the same for another year but most water and sewer customers there will soon see an increase in rates.
During the regular monthly meeting Tuesday night, the Alexandria Aldermen adopted on second and final reading the city’s budget ordinance for the 2019-20 fiscal year beginning July 1.
Alexandria property owners will continue to pay .7944 cents per $100 of assessed value. The only major pending capital project listed for the year in the general fund is $35,000 for the purchase of a police vehicle.
The city was forced to take action on rates affecting its 970 water and 405 sewer customers
Under the new budget, current water and sewer rates will not change for customers inside the city using the minimum up to 2,000 gallons per month. Their water bill will remain at $26.00 plus tax and their sewer at $20.00 per month. But for usage above the minimum, water and sewer customers will pay $10.40 per thousand, up from the current rate of $7.77 per thousand.
For example, an inside the city water customer who uses 5,000 gallons per month will see their monthly bill go from $49.31 to $57.20 per month plus tax while bills for sewer customers using 5,000 gallons a month will jump from a current bill of $43.31 to $51.20 per month.
Water customers outside the city will pay $34.52 per month (no sewer), up from $28.52 for the minimum plus tax and $12.48 per thousand above the minimum, up from the current rate of $7.77 per thousand.
For at least three years Alexandria’s water and sewer fund has lost money operating in the “red” which is in violation of state law. The city was ordered months ago by the state’s water and wastewater financing board to come up with a plan to correct the issue or be subject to the state setting the rates for the utility. In response to the order Alexandria asked the municipal technical advisory service (MTAS) to conduct a rate analysis to essentially give the city guidance on how much rates should be adjusted to bring the utility into compliance.
Also in order to comply with the state’s order, Alexandria had to offer a five year plan of action for making capital improvements to the water and sewer system. The MTAS study also covered that including a plan on how the city would pay for it. The city is hoping to obtain funding through a Rural Development Loan, a State Revolving Fund Loan, and a Community Development Block Grant for the needed projects.
Pending capital projects planned for the city’s water and sewer fund in the coming year include $12,000 for a sewer plant equipment upgrade and $6,000 for new water meters, the first of a four year (water meter) project.
“The water meters are regular read so we are just updating in Zones to help identify areas with water loss and are included at $6,000 per year in our future projects,” said Elizabeth Tetlow, Municipal Financial Officer/City Recorder.
Future plans are to upgrade the city’s sewer plant and collection system, a $1,350,000 project and a $30,000 water pump motor upgrade.