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PARKERSBURG -- The Wood County Commission approved a rate increase for the Lubeck Public Service District on Thursday.
The commission unanimously approved a 7.25 percent rate increase for water and a 11.5 percent increase for sewer service.
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.
Officials said a lot of the increase is needed for a reserve fund, required by the state. The PSDs have to retain money equal to one-eighth of their operating and maintenance budget. Initially, officials thought they would have time to build up the fund, but changes in state legislation now require the reserve account to be fully funded annually.
Lubeck PSD Manager Rocky McConnell said 4.97 percent a month for sewer and 5.45 percent for water each month will go into the account.
"They have to be prepared to come in and ask for a decrease if that one-eighth builds up to a level that they would have to decrease the rate," Commission President Blair Couch said.
One of the concerns from residents was if they would see regular increases to keep that account funded.
Couch said he didn't think that would happen as the PSD initially cut the amount they were asking for at the commission's request. Also, the commission specified the district would have to look at decreases if that fund is built up to a point there would be an excess amount.
Lubeck PSD has around 4,400 water customers, officials 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 will increase the bill around $8.50 a customer, officials said.
The initial amount being asked for was higher, but officials worked on the numbers and were able to lower it.
"We appreciate Lubeck PSD coming back and adjusting their rate increase," Couch said.
Officials are already planning to hold a meeting in early October 2021 for Lubeck PSD officials to come before the commission to discuss the needs of the district as well as their successes, present financial records and other items of concern.
"We can have a robust discussion about where the path forward is," Couch said.
Commissioner Robert Tebay said he wanted to see an accounting of the expenses taken out of that fund.
"We want to see what it is being used for," he said.
Commissioner Jimmy Colombo detailed a time when, as mayor of Parkersburg, the city had trouble with its water and sewer systems being underfunded and they had to take steps to correct that for the betterment of everyone to make sure they had clean and safe water.
"We owe it to your customers to have continual clean water," he said to the PSD officials. "You owe it to us to continually give us proper updates."
Also around this time next year, Couch wants representatives from the other public service districts to come before the commission to discuss similar things.
"We do have to start talking about consolidation," Couch said of local public service districts.
County officials have discussed that some of the PSDs in the area contract to others for water while others have different issues that make consolidation more preferable, including many cost saving measures.
"We are to a point where the water extension projects are few and far between," Couch said. "There are fewer customers without municipal water.
"It is a critical piece that everyone needs safe clean water."
The local PSDs have continued to apply for water extension projects. One point brought up during discussions for the rate increase was property owners who originally signed up for water service in the Belleville area who eventually backed out.
Couch said the different PSDs are competing against each other for funding to fill out these remaining projects.
"It may make better sense if we are united on the projects that are achievable," Couch said.
McConnell said they are already posting pictures of some of the issues they have faced on their website to share with the public some of the challenges they face, including large glops of hair and large amounts of baby wipes getting stuck in their machinery.
"The public has to know what your problems are because they are their problems too," Colombo said. "Everyone has to work together to make it better."
Couch said no one is happy with rate increases, especially now.
"We have to make sure we have healthy and clean water and sewer now for residents," he said.
Contact Brett Dunlap at bdunlap@newsandsentinel.com