Breaking News
Local News

Public weighs in on rate proposal from Lubeck PSD

By Brett Dunlap 4 min read

PARKERSBURG -- People had concerns about a proposed rate increase being sought by the Lubeck Public Service District.

Around 18 people attended a public hearing Monday evening at Bicentennial Park, hosted by the Wood County Commission. Residents, district officials, county officials and others were in attendance.

The Lubeck PSD is seeking a 7.25 percent rate increase for water and a 11.5 percent increase for sewer service. The Wood County Commission will decide if the rate increase will be approved due to a 2015 change in state law which gives them oversight of the rates of the Lubeck and Claywood Park PSDs.

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, PSD officials have said.

Resident Lee Sylvester wanted to know what the commission's position was on the matter and if they have decided how they would act.

Commission President Blair Couch said the commission was put into the position of having to approve the rates. They wanted to hear from the public about how it would impact them. They have also sought guidance from the state Public Service Commission in how to approach their considerations.

The commission also appoints members to the district's governing board.

Commissioner Robert Tebay was also helping supply residents with information. Commissioner Jimmy Colombo was absent due to a personal matter, but had been on the phone with Couch earlier in the day talking about the situation and Centers for Disease Control guidelines about having safe municipal water.

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

An average customer uses around 3,200 gallons of water a month which would put the current payment at $29.22, officials said, adding with the new proposed increase, it would go to $31.35 which is an increase of $2.13 a month.

For sewer, an 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.

"For water and sewer it could increase the bill around $8.50 a customer," Couch said.

Resident James Carvell said he lives alone and uses around 2,000 gallons and his bill is around $60.

The district was before the commission about four years ago for a rate increase.

Carvell said he was told that increase would "go up the price of a Big Mac."

He and others had concerns over continuing increases and new requirements the district has to abide by now, namely to have a reserve fund in place.

PSD officials said initially they had some time to build up that fund. However, now the state is ordering them to have that fund in place annually, due to recent legislation passed by the state legislature.

"That is the main portion of the increase to cover (that order)," McConnell said.

They have around a third of the fund in place in regards to water and under a quarter of the way on the fund in regards to sewer, he said.

Carvell asked how long it will take to get it to where it needs to be and how many rate increases.

McConnell did not know, saying he needed to consult with their accountant.

"In other two years, you might have to ask for another increase to meet fluctuations in rising costs," Carvell said.

The reserve fund is supposed to be used for an extraordinary expense the district might have, replacing a pump or other large-scale item, officials said.

PSD officials said they have been looking at expenses, making cuts and charging employees more for insurance coverage to be able to cut some of the district's expenses.

"That reserve accounts should be built up and maintained over the course of a year," Couch said.

The increase is also covering $1,570,029 in bonds at zero percent interest rate over 19 years with a payment of $82,633 a year, officials said.

Carvell said the potential was there for the district to have to raise the rates every couple of years in order to maintain that reserve fund.

"They will have to come back to us and we will have to look out for the public's best interest," Couch responded.

PSD officials said if they don't have that fund in place and funded they could be ineligible for state funds they might apply for in regards to different projects.

Lubeck PSD officials are going to be on the commission's agenda for Thursday for follow-up and where the commission could take action.

Couch said the commission would take additional comments from people in writing or over a phone call if they wanted to contact them.

Contact Brett Dunlap at bdunlap@newsandsentinel.com

Starting at /week.