MONROE - The city's Finance and Taxation Committee will move the issue of increasing the water rates to March 16, according to committee Chairman Kent Kallembach.
At a Common Council meeting Tuesday, Alderman Mark Coplien asked that the committee move the date up from April 7.
"If we don't make a call quickly, PSC will do it for us, and we don't want the Public Service Commission determining our water rate for us," he told council members.
Coplien also noted that he would be asking the committee to consider removing part of the Water Utility's property tax burden, and adding an equal amount in property tax to the Wastewater Treatment Plant budget.
The 2010 city budget, which includes the utility's five-year budget, shows the utility paying $272,000 to $283,000 annually for property tax from 2010 through 2014. That money is paid in total to the city, and is considered a revenue by the city in its general budget. The tax money does not go to support the school district or the county.
By transferring part of the burden to the Wastewater Treatment Plant Utility, Coplien said the city would not lose money out of the general fund. Coplien is suggesting a $100,00 shift from the water utility to the wastewater utility.
Neither Coplien nor Mayor Ron Marsh knew why the two utilities were taxed differently.
Marsh said the wastewater utility has always been part of the city, but the water department was brought into the city after having been a separate entity, with its own board of directors, and paid property taxes.
"I do know in 2006, the council put back $200,000 in lieu of taxes for the water (utility)," Marsh said.
Marsh said a resolution may have been passed before he became mayor in 2006, which set aside the utility's tax obligation for a set period of time.
"But it was back in the budget after 2006," he added.
The PSC authorized a 29 percent rate increase on Feb. 17.
Council voted later Feb. 17 to postpone authorizing the increase after council President Dan Henke said the rate was "too heavy" of a burden to put on residents at this point in time.
"I think there are other things council could look at doing," he said, Feb. 17.
The 29 percent increase places the utility at its PSC-authorized 6.5 percent rate of return. If passed by council, the new water and fire protection rates would give the water utility about $382,246 more in annual revenue.
The city missed a March 1 deadline for imposing a new rate, causing the water utility to lose as much as $96,000 in revenue for the quarter billing cycle that it would have had if it had been given the 29 percent increase.
Water Utility Supervisor Mike Kennison said the elimination of property taxes would help the water utility considerably.
Relieving $200,000 of its property taxes would mean the utility only needs a 14 percent rate increase, he told the committee Monday.
Financial advisor Greg Johnson of Ehlers and Associates recommended the city not use $200,000 from its $5.1 million in cash or from reserves to cover the utility's property taxes, because it is a recurring revenue source. The city has authorized the use of $950,000 of the money for construction of a new fire station on the west side.
At a Common Council meeting Tuesday, Alderman Mark Coplien asked that the committee move the date up from April 7.
"If we don't make a call quickly, PSC will do it for us, and we don't want the Public Service Commission determining our water rate for us," he told council members.
Coplien also noted that he would be asking the committee to consider removing part of the Water Utility's property tax burden, and adding an equal amount in property tax to the Wastewater Treatment Plant budget.
The 2010 city budget, which includes the utility's five-year budget, shows the utility paying $272,000 to $283,000 annually for property tax from 2010 through 2014. That money is paid in total to the city, and is considered a revenue by the city in its general budget. The tax money does not go to support the school district or the county.
By transferring part of the burden to the Wastewater Treatment Plant Utility, Coplien said the city would not lose money out of the general fund. Coplien is suggesting a $100,00 shift from the water utility to the wastewater utility.
Neither Coplien nor Mayor Ron Marsh knew why the two utilities were taxed differently.
Marsh said the wastewater utility has always been part of the city, but the water department was brought into the city after having been a separate entity, with its own board of directors, and paid property taxes.
"I do know in 2006, the council put back $200,000 in lieu of taxes for the water (utility)," Marsh said.
Marsh said a resolution may have been passed before he became mayor in 2006, which set aside the utility's tax obligation for a set period of time.
"But it was back in the budget after 2006," he added.
The PSC authorized a 29 percent rate increase on Feb. 17.
Council voted later Feb. 17 to postpone authorizing the increase after council President Dan Henke said the rate was "too heavy" of a burden to put on residents at this point in time.
"I think there are other things council could look at doing," he said, Feb. 17.
The 29 percent increase places the utility at its PSC-authorized 6.5 percent rate of return. If passed by council, the new water and fire protection rates would give the water utility about $382,246 more in annual revenue.
The city missed a March 1 deadline for imposing a new rate, causing the water utility to lose as much as $96,000 in revenue for the quarter billing cycle that it would have had if it had been given the 29 percent increase.
Water Utility Supervisor Mike Kennison said the elimination of property taxes would help the water utility considerably.
Relieving $200,000 of its property taxes would mean the utility only needs a 14 percent rate increase, he told the committee Monday.
Financial advisor Greg Johnson of Ehlers and Associates recommended the city not use $200,000 from its $5.1 million in cash or from reserves to cover the utility's property taxes, because it is a recurring revenue source. The city has authorized the use of $950,000 of the money for construction of a new fire station on the west side.