Lubeck PSD lowers rate increase request

PARKERSBURG -- The Lubeck Public Service District was able to lower its initial request for a water and sewer rate increase as officials discussed the changes with the Wood County Commission on Thursday.

During a previous meeting, officials said Lubeck PSD was seeking an 8.25 percent water rate increase and an 11.53 percent hike on sewer rates.

The additional funds are needed to meet state requirements, build reserves for repair and maintenance and address the final debt service on a 1996 bond issue, as well as to support general operations.

The commission, which has oversight of the rates of the Lubeck and Claywood Park PSDs due to a 2015 change in state law, is considering the rate increase.

Commissioners wanted them to take a look at the numbers and changing the criteria to meet specific needs.

Zachary Dobbins, a certified public accountant retained by the PSD, said Thursday they reworked the numbers to be able to completely fill a account required by the state to address extraordinary expenditures.

"We concentrated on keeping that … account funded," he said. "We put the full amount for that."

With other changes they made the proposed rate increase for water was changed to a 7.25 percent increase. With the sewer rate, the bulk of the rate increase is related to a bond repayment and they weren't able to make a significant reduction and were able to get the rate increase to 11.5 percent which took out some pump reserve accounts so they could fully fund the account required by the state.

The bonds cover $1,570,029 at zero percent interest rate over 19 years with a payment of $82,633 a year, Dobbins said.

An average customer uses around 3,000 gallons of water a month which would put the current payment at $29.22, Dobbins said. With the new proposed increase, it would go to $31.35 which is an increase of $2.13 a month, he said.

The current minimum bill for water is $19.48 for around 2,000 gallons a month. With the proposed increase it would be $20.90 which is an increase of $1.42 a month. Those include many elderly customers which make up half of their customer base, officials said.

Lubeck PSD has around 4,400 water customers, Lubeck PSD Manager Rocky McConnell said.

For sewer, a average 3,000 gallon bill is currently $50.30. With a rate increase, it would go to $56.10 which is an increase of $5.80 a month. A minimum bill for 2,000 gallons would go from $37.64 to $41.98 which is an increase of $4.34 a month.

"We are the rate makers for your PSD," Commission President Blair Couch said.

During the last rate increase four years ago, the commission asked for more open lines of communication with the PSDs.

"We want you to come in yearly and tell us your successes, your struggles and where you are at," Couch said.

That did not happen and now they are seeing the officials now for another rate increase.

"We need that yearly meeting," Couch said.

Through that interaction, they can determine if slight increases are needed or if things are going well, look at a possible decrease.

"If we have that yearly communication then we are partners with you," Couch said.

Commissioner Robert Tebay suggested the PSD needs to communicate with customers to let them know better where the money is going and what it is being used for, either through a newsletter or on their website.

McConnell said they are having issues with baby wipes getting flushed which is causing problems for their machinery as well as an excessive amount of hair going through the system. Officials showed commissioners a picture of a giant glob of hair removed from a pump station that was around the size of a man.

"We have sent out letters a few times," McConnell said. "Baby wipes are absolutely murder on the pumps."

Tebay feels something visual will help drive the point home for many people. He also said there were people in Belleville who originally indicated they were going to sign up for water service who never did which has also increased cost for the PSD.

Commissioner Jimmy Colombo said those kind of details can show how these things can revert to a cost to customers.

"You need to show what is causing the problem," he said.

In considering the rate increase, the commission wants to hold a public hearing in the near future. Officials want to schedule it for sometime possibly on a Monday evening at Bicentennial Park where people will be required to social distance and wear masks.

"We are not here to yell at each other," Colombo said. "We are here to have a level conversation about what your problem is."

Couch said they have received letters with questions people have about the rate increases. He wants people to send in their questions before the public hearing.

Officials said a decision was going to have to be made by Oct. 7 which means the commission would have to decide something by Oct. 5.

Officials discussed possibly having the public hearing around 6 p.m. on Monday, Sept. 28, with the commission making its decision on Thursday, Oct. 1.

They were going to check on availability of the park and decide soon when the hearing will be held.

Contact Brett Dunlap at bdunlap@newsandsentinel.com