Most Cassopolis residents to see water, sewer rate increasePublished 3:08pm Thursday, January 14, 2010
Action was taken at the Jan. 11 Cassopolis Village Council meeting to approve Ready-To-Serve (R-T-S) Fees in the Water Fund along with a 5 percent water rate increase.
The existing sewer R-T-S fees were also increased.
For the majority of residential water and sewer customers having a 5/8-inch water meter and using 4,000 gallons of water per month, this will mean an increase of $4.78 per month on the water portion of your bill. Rates will be higher for accounts having larger water meters.
On the sewer portion of your bill, the R-T-S fee has been increased from $8.06 per month to $12 per month, for customers having a 5/8-inch water meter, or an increase of $3.94. For customers with larger water meters, these fees are higher. For residential customers having a 5/8-inch water meter and also having sewer service, this will mean a minimum increase of $8.72 per month. Of course, higher water usage will result in larger water/sewer bills.
Water and sewer funds are enterprise funds and must be self-sufficient according to USDA requirements and the Michigan Department of Treasury.
“We have outstanding loans in both funds that must be repaid, including a Water Fund Revenue Bond that is not scheduled to be paid off until 2038,” village manager Kevin Gillette said. The principal payments increase steadily through the maturity date.
These increases were necessary as water and sewer revenues must fully cover operating expenses and be able to pay the bonded indebtedness. The current rates do not cover the operating costs of the water and sewer systems, let alone the bonded indebtedness.
This increase is effective immediately with the next water and sewer bill.
If you have any questions, contact the Village Hall for a more detailed fact sheet.