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Falls City Utility Rates Increase

By John Nixon

07/06/2016

(KTNC)--Utility rates could go up in Falls City, following first reading approval Tuesday evening by the City Council of an ordinance that would make that happen.

Approval follows the completion of a rate study, commissioned by the Board of Public Works.

Utility Superintendent Alan Romine said the City tries to keep the rates in-line with increased costs. “The last rate study was done in 2013,” Romine said. “We try to update them at least every three years to make sure we’re on track.”

If given final approval by the Council, the new rates would go into effect October 1. That would be followed by increases on October 1 in 2017 and again in 2018.

The largest increase is in the water rates, which amount to 10.5% the first year, 9.7% for the second year and 3% in the third.

The average utility bill for a Falls City residential customer would increase by $10.27 on October 1, 2016. The biggest jump coming in the electric rate at $6.11.

Romine explains the steepest hike is in electric rates due to a new generator.
“It’s about an $11.5 million project,” he said.

A water rate increase happened after higher bids were received for the new water well.

Romine said the new rates proposed keep Falls City comparable with utility rates in neighboring communities.

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