×

Lubeck Public Service District to seek water, sewer rate increases

Accountant Zachary Dobbins explains the Lubeck Public Service District's plans to seek water and sewer rate increases during Thursday's Wood County Commission meeting. (Photo by Evan Bevins)

PARKERSBURG – The Lubeck Public Service District plans to request rate increases of 30% for water and 14% for sewer, representatives of the utility told the Wood County Commission this week.

Public service districts with more than 4,000 customers or $3 million in annual revenue seek approval for rate increases from county commissions instead of the West Virginia Public Service Commission.

Zachary Dobbins, accountant with Bennett & Dobbins PLLC, told commissioners on Thursday that the district is preparing to start the process to request a rate increase and outlined the amounts and needs.

The water rate hike would take the bill for a customer using 3,000 gallons a month from $34.35 to $44.73, Dobbins said. This will help address increased salary requirements now that Lubeck’s treatment plant is a Class III facility, requiring higher credentials for operators, and an $800,000 loan to cover design costs for a future project intended to address a number of issues, plus bond covenants, general inflation and a state-mandated working cash capital reserve, he said.

The sewer rate increase would take the monthly bill for 3,000 gallons used from $60.59 to $69.09, Dobbins said. It’s needed to cover maintenance, bond covenants, the required capital reserve and general inflation, he said.

Wood County Commissioner Jimmy Colombo, left, speaks during Thursday's commission meeting as Commission President Blair Couch listens. (Photo by Evan Bevins)

Dobbins acknowledged the high percentages of the increases and said his company is recommending to the 105 utilities they work with in West Virginia to get into a system where they raise water one year and sewer the next by smaller amounts to mitigate the impact.

“I’d like to be able to get back to where we could come in and ask for 3-4% rate increases,” he said.

Commissioner Jimmy Colombo recommended the district update people on the rate increase process and why the hikes are needed repeatedly.

“People do not like raises,” he said. “They do not like a penny raise.”

Lubeck Public Service District board member Ron Kestner said he is in a unique position, having only recently joined. Six months ago, he said, he would have been opposed to the rate increases but now he’s learned how the utility works and the rising costs it faces.

“When you have a complete understanding of it, it makes it a lot easier to swallow,” Kestner said.

Dobbins said the district must introduce the rate increase at a public meeting, send notice to customers and hold a public hearing at another meeting before submitting it to the commission. Commissioners can accept it, reject it or discuss a different amount, commission President Blair Couch said.

Colombo said they would consider whether to have their own public hearing on the matter later.

“You have to make sure it’s clean water,” he said. “I just think public information is so important in something like this.”

Evan Bevins can be reached at ebevins@newsandsentinel.com.

Starting at $2.99/week.

Subscribe Today