Residential sewage rates could nearly triple in by December 2011.

Based on information presented during the July 8 Douglas City Council meeting, the city is looking at large rate increases each of the next three years.

Currently, monthly wastewater rates are $6.75 per month, and the City of Douglas’ proposal is to increase it to $10 per month by December 2009, $15 by December 2010 and to $18.75 by December 2011.

No final decision has yet been made and the city plans on a public hearing on the matter on August 12.

The current rates do not fall in line with current expenses to maintain the system and provide service. For years, the city has been pulling money from the Water Fund and General Fund in order to pay those expenses.

But, since Mayor Dr. Michael Gomez and the be council began their terms, one of the goals has been to make enterprise funds, like Wastewater, self-sufficient.

The Sewer Fund’s current rates are not able meet $66,872 of the Maintenance and Operation costs and $265,968 of its debt obligation.

“The costs to provide sewage collection and treatment services continues to rise while the user fees charged to the customers have not kept pace with these rising costs,” said Carlos De La Torre, Public Works Director/City Engineer during the July 8 City Council meeting.

“The wastewater fees have not been reviewed and updated since September 1999 when Ordinance 755 was adopted. Thereafter Ordinance 794 adopted on May 7, 2001, simply extended the wastewater capital improvement surcharge on a month service from August 30, 2004 through August 30, 2007. The situation has caused the wastewater fund to be subsidized…and has not operated as an enterprise fund that is expected to generate sufficient revenue to cover its operation costs, capital improvements, and debt service and depreciation reserves.

“The sewer rate hike would allow the city to cover costs of operations, debt and capital improvements in order to regain the enterprise funds viability.’

In addition, the city is in the process of constructing and implementing various wastewater capital improvement projects throughout the wastewater collection system and facility improvements at the Douglas Wastewater Treatment Plant that not only benefit the existing customers and improve the systems’ level of service but will also provide for capacity improvement for future growth.

The increase would generate more than $900,000 in additional revenue over the next three years. Once the sewer rate hits $18.75 in 2011, there are no proposed increases.

In the end, the council did approve a resolution for the intent to increase wastewater rates or rate components, fees and service charges, and setting the August 12 public hearing at 5:30 p.m. at the City Council Chambers.