PARKERSBURG — The Wood County Commission will be discussing proposed water and sewer rate increases for two local public service districts during today’s commission meeting.

The commission has a public hearing scheduled for 10:15 a.m. today to discuss proposed water and sewer rate increases requested by both the Lubeck Public Service District and Claywood Park Public Service District.

The meeting will be held in the Fort Boreman Room at the Judge Black Annex.

Representatives from Lubeck PSD and Claywood Park PSD will be appearing before the commission to discuss proposed rate increases. Claywood Park has requested an 11% sewer rate increase and a water rate hike that would raise rates by 4.5% initially and then another 1.69% upon completion of a grant-funded improvement project. Lubeck is seeking a 9% water rate increase and 8% for sewer.

Documentation submitted to the commission from James V. Kelsh with the law firm of Bowles Rice outlines the needs of both districts in their requests for their rate increases.

Lubeck’s proposed rate increases would help bring the district into compliance with a state law that requires PSDs to establish and maintain a working capital reserve fund account that is equal to one-eighth of annual operation and maintenance expenses, according to the resolutions passed by the PSD’s governing board.

The district needs that to be in compliance in order to borrow around $423,500 to undertake a number of improvements to the water system and $107,250 for sewer system improvements. They also want to increase employee pay to retain qualified employees.

The district’s most recent water and sewer rate increase was in 2020.

Claywood Park outlined projects that needed to be done and the need for the district to be brought into certain statutory requirements of the state.

“The district regrets the need to seek a rate increase,” Kelsh said in a letter to Wood County Commission President Blair Couch dated April 11, 2023. “The District’s foremost responsibility is to provide quality utility service at reasonable rates.

“The District believes it is fulfilling that objective. In order to do so, the District needs to stay in compliance with its existing statutory and bond obligations, and to also pursue projects from time to time to extend and improve its system.”

The grant funded project is the Dutch Ridge Water System Improvement Project which will replace approximately 16,500 feet of failing four-inch line, which is too small to provide fire protection, with six-inch line which will provide fire protection, Kelsh wrote.

“Many homeowners will see reductions in their home insurance expense as a result,” he wrote.

The district’s water operations are not meeting statutory financial performance requirements to have the project built . The rate increase would help bring the district into compliance and pay increased debt service expense.

The district has already received 73% of the funding through grants and the rate increase will help fund the remaining part.

The last water rate increase was in 2016 and the last sewer rate increase was in 2017, Kelsh wrote.

The sewer rate increase is needed for the Community Acres Sewer System Improvement Project which will allow the district to replace one of its principal lift stations.

Another sewer project for Spring Valley is not a driver for the increase, but is needed for the district to put out to bid the nearly $6 million project which 77.5% of the project is being funded through grants.

Earlier this week the commission decided to stop discussions with West Virginia American Water on an offer the company made to take over the operations of the local public service districts. Commissioners are still looking at the local public service districts to consolidate to better control costs as well as having the districts outline ways they are cutting costs.

Brett Dunlap can be reached at bdunlap@newsandsentinel.com