MONROE - The City Council postponed a decision on approving a water rate hike of 29 percent at a meeting Wednesday at City Hall.
Alderman Dan Henke, council president, made the motion to postpone the vote until March 2, which passed 9-1. Charles Koch voted against.
"This rate is too heavy at this point," Henke said to the council. "I think there are other things council could look at doing."
Henke recommended the issue be "kicked back" to committees to look at the budget; he noted specifically the Finance and Taxation Committee and Board of Public Works.
Alderman Mark Coplien agreed.
"I think we can help Mike (Water Utility Supervisor Mike Kennison) in more beneficial ways - to Mike and the public - to make this work," he said.
Kennison had a telephone hearing Wednesday morning with the Wisconsin Public Service Commission which approved the 29 percent hike. Henke was present at the hearing.
The PSC recommended the 29 percent increase, after reviewing the city's application asking for a 35 percent increase. The 29 percent increase placed the utility at its PSC-authorized 6.5 percent rate of return.
If passed by council, the 29 percent rate increase would give the water utility about $382,246 more in annual revenue.
The large increase in revenue is needed because of the "result of a 28 percent increase in gross plant investment and a 34 percent increase in operating expenses" since 2004, according to the PSC.
On Monday, the Board of Public Works sent the water utility rate hike to council for consideration, without a stamp of approval.
Coplien told the board Monday the utility's annual property taxes of about $200,000 should be reconsidered, and possibly reduced or eliminated.
"I know, that's money you have to find in other places (in the city budget)," he said. "But it still seems like double taxation to me."
Kennison said the elimination of property taxes would help the water utility considerably.
The 29 percent rate increase included about $181,000 for replacing some water mains during the 8th and 9th streets reconstruction project. That project has been postponed until next year, partly to include replacing all water mains along the route from 7th Avenue to 20th Avenue, which would add an additional about $350,000 to the project. Kennison said the city is applying for grants that would could cover about 25 to 30 percent of the water main replacements.
Alderman Dan Henke, council president, made the motion to postpone the vote until March 2, which passed 9-1. Charles Koch voted against.
"This rate is too heavy at this point," Henke said to the council. "I think there are other things council could look at doing."
Henke recommended the issue be "kicked back" to committees to look at the budget; he noted specifically the Finance and Taxation Committee and Board of Public Works.
Alderman Mark Coplien agreed.
"I think we can help Mike (Water Utility Supervisor Mike Kennison) in more beneficial ways - to Mike and the public - to make this work," he said.
Kennison had a telephone hearing Wednesday morning with the Wisconsin Public Service Commission which approved the 29 percent hike. Henke was present at the hearing.
The PSC recommended the 29 percent increase, after reviewing the city's application asking for a 35 percent increase. The 29 percent increase placed the utility at its PSC-authorized 6.5 percent rate of return.
If passed by council, the 29 percent rate increase would give the water utility about $382,246 more in annual revenue.
The large increase in revenue is needed because of the "result of a 28 percent increase in gross plant investment and a 34 percent increase in operating expenses" since 2004, according to the PSC.
On Monday, the Board of Public Works sent the water utility rate hike to council for consideration, without a stamp of approval.
Coplien told the board Monday the utility's annual property taxes of about $200,000 should be reconsidered, and possibly reduced or eliminated.
"I know, that's money you have to find in other places (in the city budget)," he said. "But it still seems like double taxation to me."
Kennison said the elimination of property taxes would help the water utility considerably.
The 29 percent rate increase included about $181,000 for replacing some water mains during the 8th and 9th streets reconstruction project. That project has been postponed until next year, partly to include replacing all water mains along the route from 7th Avenue to 20th Avenue, which would add an additional about $350,000 to the project. Kennison said the city is applying for grants that would could cover about 25 to 30 percent of the water main replacements.