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Lodi considering wastewater increases
Lodi residents could see their sewer bills increase under a plan city staff presented to the Lodi City Council at a shirtsleeves meeting today.
The increases would begin July 1 at the start of the next fiscal year. City staff brought forward two plans; one comes with a 25 percent rate increase, the other is a 50 percent hike.
The initial rate hikes would be followed by further rate increases that could double the city's sewer rate by 2012 under one plan pitched by city staff. The other option, recommended by city staff, would result in a 60 percent total increase by 2012.
Public Works Director Wally Sandelin said the city needs to raise its rates to pay off a bond for about $40 million in state mandated upgrades at the White Slough wastewater treatment plant,
Sandelin said the wastewater treatment rate structure has not been collecting enough for operations and maintenance and instead has been over collecting on infrastructure replacement.
"Rate increases are coming," Mayor Larry Hansen said, "but the good news is they have been stalled because you could have been paying them for the past five or six years."
City staff favors combining the operations and maintenance fund with the infrastructure replacement fund. Under this plan, Sandelin said city staff can still do $2 million of wastewater infrastructure replacement work per year and use some of the excess funds for other costs.
The city has already been using money collected under the infrastructure replacement fee to pay for operations at the plant. The operations fund is $10.2 million in the red, and if the city does nothing, it will run out of money in 12 months, Sandelin said.
When Councilwoman Susan Hitchcock asked how the city could have gotten so far in debt, Sandelin said, "We haven't been watching our checkbook."
The council still has to vote on any increases, and there will be a public hearing on it, most likely in May. Residents will receive a card in the mail before the meeting informing them of the potential increase.
Contact reporter Maggie Creamer at maggiec@lodinews.com/blog/citybuzz.
Here's a look at the wastewater rate plans and how much they would cost a resident with a three-bedroom home.
• Plan 1: Combine the operations and maintenance fund with the infrastructure replacement fund:
July 1, 2009: 25 percent increase
Three-bedroom home: $34.68, a $6.94 increase
July 1, 2010: 20 percent increase
Three-bedroom home: $41.61, a $6.94 increase
July 1, 2011: 10 percent increase
Three-bedroom home: $45.77, a $4.16 increase
July 1, 2012: 5 percent increase
Three-bedroom home: $48.06, a $2.29 increase
July 1, 2013: 0 percent increase
• Plan 2: Keep the operations and maintenance funds separate from the infrastructure replacement fund:
July 1, 2009: 50 percent increase
Three-bedroom home: $41.61, a $13.87 increase
July 1, 2010: 25 percent increase
Three-bedroom home: $52.01, a $10.40 increase
July 1, 2011: 25 percent increase
Three-bedroom: $65.02, a $13 increase
July 1, 2012, and July 1, 2013: 0 percent increase
For more of this story, see Wednesday's News-Sentinel.
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Reader Feedback
OTH wrote on Mar 31, 2009 11:29 PM:
I thought large department had it's own abacus. They just have to have someone who knows how to use it. LOL This way Sky King can play the shell game to a higher level than in years past.
Where did they bury the money that was, or is owed on Hutchins Street Square? "
T & C wrote on Mar 31, 2009 6:41 PM:
ameriCAN wrote on Mar 31, 2009 4:56 PM:
Yet we have been paying the highest electric rates for years thanks to this guy. "
dogs4you wrote on Mar 31, 2009 4:23 PM:
sam wrote on Mar 31, 2009 4:11 PM:
She wants to throw another $1/2 million at the greenbelt that will never be, and she is whining about not watching Lodi's checkbook?
That is funny. "
Whoa Nellie! wrote on Mar 31, 2009 4:10 PM:
WHERE IS THE ACCOUNTABILITY ??!!?? "
Whoa Nellie! wrote on Mar 31, 2009 4:07 PM:
"Sandelin said the waste water treatment rate structure has not been collecting enough for operations and maintenance and instead has been over collecting on infrastructure replacement."
We're talking about the $10.2M in the red the plant is in while you are talking about the bond. Don't try to play the shell game and switch the focus. And, IMHO, based on the leaky pipes how can we be overcharging? I would think we'd want to get new pipes in ASAP financially.
But here is what scares me: "City staff favors combining the operations and maintenance fund with the infrastructure replacement fund. Under this plan, Sandelin said city staff can still do $2 million of waste water infrastructure replacement work per year and use some of the excess funds for other costs."
Sure, if they combine the funds there is little or no accountability. And this is exactly how we got to this point. "
OTH wrote on Mar 31, 2009 2:19 PM:
commonsense1 wrote on Mar 31, 2009 2:14 PM:
LodiSafeway wrote on Mar 31, 2009 1:36 PM:
If I don't keep track of my checkbook who do I go after to make up the difference? No one but I! So why should any of us shoulder the responsibility for the failure of those paid to care for these things? The insanity and incompetence of government is rampant all the way from Washington to little ol' Lodi.
Is reconciling one's accounts that difficult? Is Lodi so big and complicated that tossing each monthly statement into a drawer or the waste can the only answer to such a difficult task? Is anyone taking "We haven't been watching our checkbook" seriously?!? Do they really get away with this?
Someone at City Hall has a bunch of explaining to do. Awww, who's kidding who? Go ahead, we're all grabbing our ankles do your worst! "
patton1 wrote on Mar 31, 2009 1:15 PM:
patton1 wrote on Mar 31, 2009 1:12 PM:
t jefferson wrote on Mar 31, 2009 12:25 PM:
Whoa Nellie! wrote on Mar 31, 2009 12:20 PM:
If this council wants to redeem themselves in the eyes of many voters they need to take action, to be proactive. I'd be in City Hall asking to see the financial records of each department- and which are in the red.
WWHGD?
What Would Hank Glaves Do? "
Whoa Nellie! wrote on Mar 31, 2009 12:17 PM:
This is just simple POOR MANAGEMENT. And it starts at the top with King and filters down thru his various Asst Mgrs and the Dept Heads. $10.M in the red is a huge amount and any Jr Beancounter would see that number jump off the page.
It would seem to me with all of the stuff going on with the wastewater issues there would be a tight financial report done monthly. How could this have gone unnoticed for so long?
Heads should roll!
And it's not the $4+ a month. It's the PRINCIPLE of the thing. Lodi has been run into the ground the past decade by horrible management by the City Managers (Flynn & King) and the City Council not thinking on it's own and rubber stamping too many "staff recommendations." That cost us millions with Envision & Lehman Bros. "
Mazie wrote on Mar 31, 2009 11:32 AM:
Comments on this story are now closed.