Palouse faces rate hike proposal

The Palouse city council is one month away from potentially raising city water and sewer rates, after approving a six-percent utility tax on those same rates last January.

Residents can comment on the proposed rates at the next city council meeting, Dec. 14.

The Palouse Water and Sewer Committee will make a final recommendation on the amount of the water and sewer raise at that meeting. The city council will vote on the measure at their Dec. 28 meeting.

The committee has been researching rates ever since the city determined it has been losing money on water and sewer services.

The committee is looking at a water rate increase of no less than $3 a month and no more than $7 with increased revenue going into the city’s water and sewer accounts. It is considering at least a $3 raise to sewer rates.

The Water and Sewer Committee is made up of council members Connie Newman, Mike Milano and Norm Schorzman.

Citizens saw at least a $2.30 addition to their utility bills last January when the city council voted in a six-percent utility tax on water and sewer rates. The tax shows up as a line item on a Palouse utility bill.

Funds from the utility tax were expected to add between $16,000 and $18,000 a year. This tax goes into the Palouse general fund.

The base fee for water is $17.50 and the base fee for sewer is $21.

The city is currently losing money for 2010 on their water service. In 2009, the city lost $22,365; they spent $174,931 on water service but received $152,566 in revenue. The city lost $2,885 in 2008 on water.

City clerk-treasurer Joyce Beeson said they are currently using money out of their water reserve account to fund their water service losses. She does not yet have exact figures on water service for 2010, but is certain it continues to operate at a loss.