MADISON — Belleville residential water rates are increasing by nearly 48% or, about $14 a month, it’s just a matter of when.

The 47.69% increase the Public Service Commission authorized June 11 hikes the water portion of the average residential utility customer’s monthly bill from $28.60 to $42.24. The price includes the Public Fire Protection Charge.

Rates for multi-family, commercial, industrial and public entity customers will increase by greater percentages, with rates for some commercial customers jumping by 92%.

The utility sought a six-month delay in implementing the rate increase to avoid imposing it during an economic downturn. However, the PSC said any delay beyond 90 days would cut too far into the utility’s debt-to-earnings ratio and will require the new rates take effect within 90 days.

Village Administrator Brian Wilson said he will consult with the village’s financial advisor to see how long the new rates can be delayed within the 90 days.

Customers opposed the rate request in numbers not often seen in a community the size of Belleville, with 39 submitting written remarks and 15 calling in to the May 13 public hearing.

The comments ranged from opposing the size of the increase, particularly the impact it would have fixed-income customers, while others criticized the utility’s practices, management and the construction of Well #3.

Many remarks were similar to Dan Warner’s who wrote about the timing of the increase.

“With the other issues the pandemic has caused, a 50% increase is outrageous. I could see a raise of 5% to 10% but a 50% increase tell me that someone has mismanaged the budget…”

Benjamin Laufenberg wrote: “If this goes through I expect there to be a lot of very disappointed residents. With the increased economic uncertainty due to COVID-19 this couldn’t come at a worse time. I urge the decision makers to reconsider this proposal,”

Chanse Kaczmarski faulted the village’s communications regarding the rate request.

“I am offended that the Village of Belleville has acted with absolutely little transparency in attempting to communicate the need for such increase to residents. The village of Belleville has historically suffered from obscene water and sewer rates that are significantly higher than other Dane County communities. While I understand that the village lacks some control in the determination of the water and sewer rates, the Village of Belleville controls a wide array of other factors that can mitigate the water and sewer rates.”

The PSC agreed that Belleville’s water rates are above average for similar sized utilities in the state but will produce revenue necessary to meet the utility’s long-term financial needs.

The new rates will increase annual revenue by $206,081 to $648,497 and after expenses of $398,339 yield a net income of $250,158 and a 4.9% rate of return on the $5.1 million net value of its infrastructure investment, according to the PSC rate order.

Without the new rates the utility would finish 2020 with a $44,077 net income and a .86% rate of return, which the PSC said fell short of its financial needs.

Wilson hadn’t read the PSC order Friday but said that although the village went through the normal notification process the PSC requires, the village should do more communicating when it seeks higher water rates.

“We had talked about it for year. We had a rate increase in 2017 and needed another to finance (Well #3). People were concerned that the 49% increase would be for the entire utility bill but it’s just the water portion of it, which we addressed,” he said.

Wilson will recommend that the village do even more to publicize rate increases, beginning even before they are filed.  While discussions of proposed rate increases are on committee agendas, people don’t pay attention until they receive notice of a pending rate increase. 

Construction of Well #3, located north of Wisconsin 69/92 and east of County PB, where significant development is occurring drove the need for more revenue.

The PSC approved the project in January 2018 at $1.619 million. Wilson said the well is completed and will go online after its final testing.