It is that time of year again, where Jefferson residents need to pay a higher rate for water service.

The Jefferson City Council approved at their September 10th meeting, the first reading to amend an ordinance to increase water rates by five percent. City Administrator Scott Peterson says the topic started at the water committee level, and there was a discussion between raising water rates either by three or five percent. He tells Raccoon Valley Radio, the committee recommended to the Council that the water rates need to increase, but there was no defined percentage.

Peterson notes that by raising the water rates by five percent, it helps keep up with the increasing costs for the chemicals to treat the water, saving money for projects such as repainting the water tower, and eventually having to update the water plant. He describes another reason is to transition away from the water department using Local Option Sales and Services Tax (LOSST) funds as part of their budget.

“The idea that for years had paid for water-related expenses using funds that were, other than water generated. So we’d use sales tax funds for that. Just really inconsistent with the idea about how utilities are self-supporting.” 

Peterson points out that the overall concept of a utility is that expenses are to be paid for by the revenue that the utility generates. LOSST made up about $70,000. The Council approved the first reading 4-1, with Council member Chad Sloan voting no because he thought five percent is too much for some individuals and families to afford. Peterson adds if the next two readings are approved at the subsequent meetings, the change would go into effect for the January billing cycle.