May 4--CARTHAGE, Mo. -- Customers of Carthage Water & Electric Plant would see an increase in water and wastewater rates under a proposed budget being reviewed by the City Council's budget ways and means committee.

CW&EP officials said larger industrial water users will be most affected by the increases, and that higher rates are needed to cover the costs of operations, capital improvements and debt service.

"Residential and small commercial users have been subsidizing industry; that's the basis of the change," Bob Williams, general manager of the plant, told committee members at a meeting last week.

The new rates recommended by the CW&EP board of directors "would reduce the disparity of costs per unit between small and large users," he said.

The proposal calls for the smallest residential users to see an increase of 83 cents per month, bringing their monthly charge to $29.93 for water and sewer services. The average residential user would see a hike of $2.47, for a monthly charge of $43.13 for the combined services. The bills for large residential users would grow by $5.09, to $61.72 per month.

"The increases are bigger for the bigger users, but our rates are still in the middle of the pack or lower than other cities in the area," Williams said.

He said there has been no change in the city's water rate since 2003 and in the wastewater rate since 2004.

The recommendations would translate into a 6.1 percent increase in water rates, bringing revenues to $2.7 million, and an 11.1 percent increase in wastewater charges, bringing collections to just over $1.9 million.

The budget also reflects changes in electric rates that Williams said "will be revenue-neutral for all customers."

The CW&EP budget is separate from the city budget, but is submitted for committee review and council approval since the operation is a city utility.

Up next

Carthage City Council action on the budget is set for June 9 and June 23. The spending plan will go into effect for the fiscal year starting July 1.

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