As a courtesy to the Osceola Water Works customers, the Water Works Board is hosting a public hearing based on a proposed water service rate increase in 2016. This hearing will be at the Osceola Water Works office, January 7th, 2016 starting at 5:30pm. The Board would like to discuss the factors that have led to the proposed rate increase, as well as the costs associated with management and servicing the water for the City.
Osceola’s water taste and odor has been a large focus for the Water Board in 2015. While the Water Works team has worked to address the taste and odor issues with a variety of chemical treatment solutions, West Lake’s proximity to the treatment plant has made the contact time with these agents less than effective. Solar Bees added to West Lake to control algae have shown some progress, but that is also a solution that will be fully realized over time.
After meeting with engineer Mark Duben, a strategy for addressing the immediate issues was developed. By increasing the frequency in which the carbon filters at the treatment plant are changed out, the process will accelerate the removal of a host of organics as well as byproducts of chemicals used to fight taste and odor issues. Another solution discussed was changing the filtering process to ozone, but that would include substantial start-up costs and would only be impactful if Osceola was seeing the issues on a daily basis.
Duben went further to explain that he was seeing a rise in costs for treating surface water throughout the country. The weather also plays a huge role in treating surface water. With Duben’s insight on processes and costs associated with them, as well as regulations becoming more stringent, the Board found it necessary to consider 2016 rate increases and has set a public hearing regarding the matter.
The rate increase of 10% is proposed to take effect on February 1st of 2016.
Following is a snapshot of what this increase would look like as compared to current Osceola Water rates and utility bills:
CURRENT RATES:
| RESIDENTIAL | COMMERCIAL & INDUSTRIAL | ||
|---|---|---|---|
| ALL AMOUNTS PER 1,000 GALLONS | |||
| TIER 1, FIRST 50,000 GALLONS | $5.52 | $5.78 | |
| TIER 2, NEXT 950,000 GALLONS | $4.44 | $3.93 | |
| TIER 3, NEXT 2,000,000 GALLONS | $3.63 | ||
| TIER 4, OVER 3,000,000 GALLONS | $3.26 | ||
RATES AT A 10% INCREASE (PROPOSED):
| RESIDENTIAL | COMMERCIAL & INDUSTRIAL | ||
|---|---|---|---|
| ALL AMOUNTS PER 1,000 GALLONS | |||
| TIER 1, FIRST 50,000 GALLONS | $6.07 | $6.36 | |
| TIER 2, NEXT 950,000 GALLONS | $4.88 | $4.32 | |
| TIER 3, NEXT 2,000,000 GALLONS | $3.99 | ||
| TIER 4, OVER 3,000,000 GALLONS | $3.59 | ||
The current utility bill reflects the charge for water, sewer, sewer surcharge and garbage services. Below is a breakdown of a residential customer’s minimum billing for water at the current rates and then at a 10% proposed rate increase to be effective on the billing statement issued on February 1, 2016.
CURRENT:
| OSCEOLA WATER WORKS SERVICES | |||
|---|---|---|---|
| WATER MINIMUM 2,000 GALLONS | $11.04 | ||
| SALES TAX | $ .77 | ||
| TOTAL WATER WORKS PORTION: | $11.81 | ||
| CITY OF OSCEOLA SERVICES | |
|---|---|
| SEWER MINIMUM 1,000 GALLONS | $ 3.42 |
| SEWER SURCHARGE | $18.31 |
| GARBAGE RATE | $19.78 |
| TOTAL CITY OF OSCEOLA PORTION: | $41.51 |
| MINIMUM RESIDENTIAL UTILITY BILL: | $53.32 |
10% INCREASE OF WATER RATES:
| OSCEOLA WATER WORKS SERVICES | |||
|---|---|---|---|
| WATER MINIMUM 2,000 GALLONS | $12.14 | ||
| SALES TAX | $ .85 | ||
| TOTAL WATER WORKS PORTION: | $12.99 | ||
| CITY OF OSCEOLA SERVICES | |
|---|---|
| SEWER MINIMUM 1,000 GALLONS | $ 3.42 |
| SEWER SURCHARGE | $18.31 |
| GARBAGE RATE | $19.78 |
| TOTAL CITY OF OSCEOLA PORTION: | $41.51 |
| MINIMUM RESIDENTIAL UTILITY BILL: | $54.50 |
RATES FROM COMPARABLE, NEARBY COMMUNITIES ARE AS FOLLOWS:
| COMPARABLE COMMUNITIES’ WATER RATES | |
|---|---|
| LEON | $24/2000 GALLONS |
| OSCEOLA | $11.04/2000 GALLONS |
| WINTERSET | $24.61/2000 GALLONS |
| CHARITON | $18.02/2000 GALLONS |
| CRESTON | $9.07/2100 GALLONS |
In addition to the rate increase, the board has also proposed an increase in the water deposit amount as well as the penalty fees for late payment. These measures are proposed in an effort to encourage customers to pay their bills fully in a timely manner.
For more information, contact: Brandon Patterson, Osceola Water Works, 208 W Jefferson St, Osceola, IA 50213, phone: (641) 342-1435, web: www.OsceolaWaterWorks.com, email: OsceolaWater2@windstream.net
