Sewer rate increase under review by Parkersburg Utility Board
PARKERSBURG – A sewer rate increase was discussed Tuesday by the Parkersburg Utility Board, which could make a recommendation on a new rate to Parkersburg City Council.
The PUB took under consideration four rate proposals effective for 2025, 2026, 2027 and 2028.
The 2024 charge based on 3,400 gallons of usage per month is $40.39. The options would increase rates from: $40.39 in 2025 to $47.53 in 2028, 17.68%; to $47.68 in 2028, 18.05%; to $47.85 in 2028, 18.47%; and to $48.70 in 2028, 20.57%.
Officials said a rate increase has been discussed for several years. The last sewer increase approved by council was in 2014 with the final step of the increase effective in 2017.
Going much longer than that without a rate adjustment to cover improvements can impact the quality of the system, according to Mayor Tom Joyce, chairman of the utility board.
“You’re setting yourself up for some difficult situations,” he said.
Since the last increase, the system has encountered significant cost increases because of supply chain issues, inflation and rises in health insurance premiums, according to Eric Bennett, utility board manager. Costs continue to increase and no changes are anticipated because of the tariffs proposed by President Donald Trump, Bennett said.
The system has been able to continue with the existing rates through interest income, debt retirement and, most significantly, the refinancing of sewage bonds, he said.
Besides meeting operating costs and bond covenants requiring a certain amount of revenue available to pay debt, an issue is that customer rates determine the interest rate on loans or the eligibility of grants from state and federal sources, Bennett said.
The percentage of rates compared to median household income also determines interest rates for government loans, he said. Existing rates are 1.28% of median household income while rates above 1.5% of the median household income are eligible for low-interest loans and grants, he said.
“The higher the percentage of the rates to MHI, the greater burden there is on the rate payer, which determines the availability of low-interest loans or grants,” Bennett said.
Projects are in different stages of readiness and will be needed regardless of the rate increases, he said. The projects include the Little Kanawha and Neal Run Interceptor, $26 million; the Hill Avenue, Marrtown Road and Lee’s Hill sewer extensions, $1.6 million, $3.9 million and $5.523 million, respectively; and the Bird Street Pumping Station, from $10 million to $15 million.
A substantial amount of grant funding will cover most of the expected construction costs for the Little Kanawha, Lee’s Hill, Marrtown and Hill Street projects, Bennett said. However, the final cost is not known until bids are received for the projects, Bennett said.
The board took no action. The next meeting is March 25.
A decision should be made within 30 days, Bennett said.
“The board will need to determine which (of the options) we take to City Council,” he said.
No one likes to pay higher rates, however, “it’s a business, so rates being set by politics isn’t good for business,” Bennett said.
In other business, the board approved:
* An agreement with Strand Associates for a new 25-year Water System Master Plan at a cost of $460,000.
* A change order to address potential runoff issues in the Ridgeway Avenue Fire Line by adding curbing and a drop inlet for $9,950. The contractor is Stonegate Construction.
Jess Mancini can be reached at jmancini@newsandsentinel.com.
