Utility rates examined
Council hires consultant to review cost hike
Following blowback from the community on rate increases for city utilities that saw some customers paying up to 200% more a month for water and sewer services, the Newcastle City Council has decided to hire a consultant to review fees and fee schedules for the services the city provides to residents.
After a recommendation by Councilman Tyrel Owens at the council’s Nov. 20 meeting, council members voted to engage GettingGreatRates.com for rate analysis. This service will cost the city roughly $7,045.
Other quotes gathered by Owens included rateanalysis.com at $7,500 and Trilogy LLC at $9,600 for 80 hours of work.
Owens had previously suggested that the city hire a consultant before the council voted to increase rates, which were approved on third reading on Aug. 21. The rates were first discussed in June.
The council did not take Owens’ recommendation at the time, instead opting to increase rates for sewer, water and garbage without outside help. When these increases were implemented in August, customers quickly disputed the rates in open meetings, and in response to the backlash, Owens suggested that the council reconsider hiring a third-party consultant to review the rates and determine city rate structure moving forward.
In addition to hiring the consultant to review the rates, the council also voted to have City Attorney Dublin Hughes review contracts for utilities with local entities who receive services under contract agreements. One entity specifically mentioned was the Wyoming Honor Conservation Camp.
Public Works supervisor Greg Stumpff told the News Letter Journal that the city had discovered three contracts for utility services that were outdated, although he did not name the three entities involved.
“We are simply updating the contracts that are already in place. The contracts address rate increases and are being charged the new rates,” Stumpff said. “I am not sure how long this process will take.”
As previously reported by the News Letter Journal, the Weston County School District No. 1 board of trustees was made aware during an October meeting that the district’s lawyer was reviewing their contract for services with the city, citing steep increases in utility costs.
New rates
In the July 26 story, “Council approves increases,” the NLJ reported that sewer rates for customers residing within city limits will be $21.53 per month for the first 2,000 gallons or less upon adoption of the rate increase.
Anything over 2,000 gallons will be prorated on the amount furnished at $9 per 1,000 gallons.
Rates for users outside of city limits were not included in the updated ordinance, despite being included in previous ordinances. An amendment to the ordinance, added on Aug. 14 on second reading, increased rates for customers outside of city limits to $27.50 for the first 2,000 gallons and $11 per 1,000 gallons after the initial 2,000 gallons.
Sewer charges are based on the amount of water furnished by the city per month to each service outlet, according to the ordinance.
New rates for water are $19.50 per month for the first 2,000 gallons of water used for users inside city limits. Anyone using over 2,000 gallons a month will pay $7 per 1,000 gallons.
For users outside of city limits, new rates will be a flat-rate charge of $11 per 1,000 gallons.
The council approved both ordinances on third reading during its Aug. 21 meeting, and legal notices announcing the changes were published in the newspaper and online.
Under the previous pay system, residents paid a base rate for minimum usage (2,000 gallons) and were then assessed under a couple of different rates for usage that exceeds the minimum.
In addition to water and sewer fee increases, the council also voted to increase garbage rates, with the third reading of the ordinance taking place on Nov. 6.
According to the ordinance, the 95-gallon containers used by residents will increase to $20.10 a month for one collection per week per can. Previous rates were $16.75 a month, picked up one time a week.
For 300-gallon cans, there is a service schedule depending on the number of cans and the number of pickups needed per week. Prices range from $71.42 for one can with one pickup a week to $1,520 for eight cans at five pickups per week.
Previous rates were $59.52 a month, picked up one time a week.
For residents outside of city limits, 95-gallon containers will cost $30.14 for one collection per week per can. For the 300-gallon cans, rates begin at $111 for one can at one pickup per week to $2,671 for eight cans with five pickups per week.
Other additional fees include $40 per can for each additional collection from 96-gallon containers and $125 per can for additional pickups from 300-gallon cans for inside city limits. Outside of city limits those rates are $60 per container and $160 per can, respectively.