Palouse water and sewer bills to see increases in 2011

Palouse residents will see their water and sewer bills rise for the second year in a row this February.

The council voted Dec. 14 to raise the Palouse base water rate by $5.50 and the base sewer rate by $3. They also voted to raise the overage fee for water from $1 to $1.25 for every 100 cubic feet over the allowed base amount.

Citizens saw their bills rise last year when the council chose to activate a utility tax on water and sewer. Citizens saw, at minimum, a $2.30 addition to their utility bill last January after the city council voted to enact a six-percent utility tax on water and sewer bills. The tax shows up as a line item on Palouse utility bills.

The funds from the tax were expected to raise $16,000 this year and $18,000 in the subsequent years. Proceeds from the utility tax go into the town’s general fund.

The council voted this month to raise their rates because the city has been losing money on its water and sewer service throughout 2008, 2009 and 2010. The city was in the red all three years.

City clerk Joyce Beeson said the loss came in part because the city was not charging enough for water and sewer. Their rates compared to other towns around the state were low.

The raise next month in water and sewer rates is a step toward balancing the city water and sewer funding, said Palouse council member Connie Newman.

“It’s state law we have to balance the budget,” Newman said.

The 25 cent raise on the overage fee will partially fund the city’s $50,000 water system plan.

The city is working to put together a comprehensive, $50,000 water system plan that will map out and analyze the city’s entire water system.

Newman said the 25 cents extra will raise about $9,000 a year.