City rates increase

Alexis Barker
NLJ News Editor
 
Despite concerns about proposed water and garbage collection rate increases, the Newcastle City Council voted unanimously on July 1 to approve the ordinance setting the increases. 
According to City Clerk-Treasurer Greg James, water rates will increase by 18% or $2.03 on a minimum water bill if the rates are approved on third reading. Garbage collection rates will rise by 20% or $2.79, and infrastructure fees will rise by $5. 
James said that increases will take monthly water charges to $13.30 on a minimum bill, garbage collection will cost a total of $16.75, and infrastructure fees will be $8 a month. The total increase to a minimum city utility bill will be $9.83. James said that there is no way to truly calculate and average the increase because of varying water usage among customers. 
Cathy Jones, a Newcastle resident, attended the July 1 council meeting to express her concerns regarding the rates, the council’s approval of them and the notice given to city residents prior to the vote on second reading of the ordinances changing the rates. 
Jones first questioned whether or not the funds accumulated from the increase would be used to complete general fund projects because as far as she was aware city enterprise accounts were running in the “black.” 
Mayor Deb Piana explained that the funds raised through rates and rate increases stay in their designated enterprise accounts and are used to supplement projects within those accounts. James said that general fund dollars had been used in previous years to make sure those enterprise accounts run in the black and that the rates were being raised over time to make the accounts self-sufficient. 
“Here is the problem,” Jones said. “that is too much money at one time. There are too many people in Newcastle on a fixed income that cannot afford that. Those people were not given the option to even talk about it.” 
According to Piana, the council’s minutes included the approval of the rates on first reading and that the rate increases had only been talked about at city budget workshops before the meeting where the first vote was taken. 
Councilman Michael Alexander said that the first two readings gave residents enough information to express their opinions before third and final reading approval. 
Jones reiterated her concern for the city’s older residents, who might not be aware of the process.
“I know what they are going through. They are struggling. They don’t have the internet and don’t read the paper, and they don’t understand what is going on. They can’t speak for themselves and someone needs to,” Jones said. “Black Hills Energy is also considering an increase. When is it going to stop? Are there any alternatives to the increase?” 
Jones said that for some people, including those without jobs, even a $2 increase is too much. 
“If you were paying attention on Facebook, many people said that does it for me, I can’t do it,” Jones said. “There has to be a point.” 
Piana said there is assistance available in the community to people struggling financially. She also said that City Council must be fiscally responsible because it has a responsibility to all citizens, not just those who may be low income or on a fixed income. 
Jones asked if the city could have the same assistance program that Moorcroft has for elderly. 
City Attorney Jim Peck said that, in order to qualify for a reduced rate, people must first qualify through the state for a reduction in their property tax. Only 6 or 7 people in Moorcroft qualify, he said. 
“The infrastructure fee alone is $43.80 a month, we pay $3. Moorcroft’s minimum total bill is $148.57,” Piana said, noting that compared with Moorcroft, Newcastle’s charges were minimal. 
Piana said that she believes the problem is that people are seeing the rate increase of 18% and not realizing that the increase is only $2. 
“Why don’t you tell them; people are walking around scared,” Jones said. 
Piana asked what the council should do to get the information out to the public. She said that only Jones attended the meeting and that the city office had not received a single phone call from a concerned citizen about the increase. 
“We have a responsibility to be financially responsible,” Councilman Don Steveson said. “We know there are a percentage of people that will be affected, but there are others we are trying to do things for. We had water leaks this winter. We have roads that need fixed. We have to fix water lines, and we are working on different projects.” 
The third and final reading of the ordinance will take place on July 15.