MADISON - Water rates in the village of Belleville have not increased since 2010, but would jump by 42 percent, according to a rate request recently filed with the Public Service Commission.
The Municipal Water and Sewer Utility needs more revenue to finance bonds it took out last year to finance new mains along Wisconsin 69, complete a $1.3 million well project and extend service beyond the Duluth Trading Co. property, said Village Administrator Brian Wilson.
Residential customer water bills currently average about $291 annually for 4,000 gallons used monthly, said Wilson. A 42 percent increase would add about $122 to the annual bill, or about $10 a month.
The new well is needed to meet anticipated residential housing demand in the Bell West subdivision, Wilson said. There would be 250 homes added when it reaches build-out.
Utility revenue has been relatively stable in recent years: $320,418 in 2013 and growing to an estimated $337,980 last year. Meanwhile, annual operating expenses have averaged $138,688 since 2013. Payments in lieu of property taxes and depreciation cost boosts total annual expenses to $288,844, according to the application.
The requested rates are projected to increase annual revenue by $133,585 and earn a net income in excess of $51,000 and a 5 percent rate of return on the value of the utility's infrastructure investment, according to the application.
Before new rates are set, PSC staff will review the application and recommend an amount of revenue it deems the utility needs to remain financially viable. The village can contest or support the revenue recommendation. Customers can comment on the impact of the proposed rates at a public hearing to be held simultaneously in Belleville and Madison at a date yet to be set.
Wilson expects the rate-setting process to take several months and could not gauge how customers will respond.
"I don't know at this point. With the number of customers increasing, the costs will be spread out a little bit. Initially, we weren't anticipating a change in the number of new customers.
"Also, some debts will be retired in the next year or so which would ... offset (water or sewer bills) some," Wilson said.
The rate case has been a long time coming. The village board has been discussing requesting higher water rates since the end of 2015, about four months before Wilson became administrator in April 2016, he said.
The Municipal Water and Sewer Utility needs more revenue to finance bonds it took out last year to finance new mains along Wisconsin 69, complete a $1.3 million well project and extend service beyond the Duluth Trading Co. property, said Village Administrator Brian Wilson.
Residential customer water bills currently average about $291 annually for 4,000 gallons used monthly, said Wilson. A 42 percent increase would add about $122 to the annual bill, or about $10 a month.
The new well is needed to meet anticipated residential housing demand in the Bell West subdivision, Wilson said. There would be 250 homes added when it reaches build-out.
Utility revenue has been relatively stable in recent years: $320,418 in 2013 and growing to an estimated $337,980 last year. Meanwhile, annual operating expenses have averaged $138,688 since 2013. Payments in lieu of property taxes and depreciation cost boosts total annual expenses to $288,844, according to the application.
The requested rates are projected to increase annual revenue by $133,585 and earn a net income in excess of $51,000 and a 5 percent rate of return on the value of the utility's infrastructure investment, according to the application.
Before new rates are set, PSC staff will review the application and recommend an amount of revenue it deems the utility needs to remain financially viable. The village can contest or support the revenue recommendation. Customers can comment on the impact of the proposed rates at a public hearing to be held simultaneously in Belleville and Madison at a date yet to be set.
Wilson expects the rate-setting process to take several months and could not gauge how customers will respond.
"I don't know at this point. With the number of customers increasing, the costs will be spread out a little bit. Initially, we weren't anticipating a change in the number of new customers.
"Also, some debts will be retired in the next year or so which would ... offset (water or sewer bills) some," Wilson said.
The rate case has been a long time coming. The village board has been discussing requesting higher water rates since the end of 2015, about four months before Wilson became administrator in April 2016, he said.