Johnston Discusses Possible Changes to Water, Sewer Rates

The city of Johnston plans to conduct a study on possible changes to the water and sewer rates this month.

The Des Moines Register reported city staff has been concerned about maintaining a healthy fund balance and cash flow.

The city razed the rates the past two years, but net losses are projected for the two operating funds.

Loss in the water fund was $544,209 and loss in the sewer fund was $70,149, Teresa Rotschafer told the council at Monday's work session.

Last year's drought saw an increased in the amount of water sold.

Rotschafer said the city made approximately $600,096 last year, compared to $114,000 in 2010-11.

Both water and sewer rates are scheduled to increase in July.

The city's ordnance for water and sewer rates says the rates are up for review at least every two years.

Staff said they would like to have a second opinion on the rates.

Northland Securities Inc., was approved as the organization to complete a financial plan and rate structure for both funds, the Register reported. The cost of the study will be $11,849.

The results should be completed sometime in May, giving staff and council time to discuss changes before the upcoming rate adjustments.

Anticipated rate changes are:

• $6.39 to $6.90 for 1,000 gallons per month; $4.88 to $5.43 for more than 5,000 gallons per month
• $6.09 to $6.78 for irrigation of 1,000 gallons per month
• $6.50 to $6.75 for the fixed water rate

Sewer rate changes this year include:

• $5.09 to $5.25 for the fixed sewer rate
• $28.59 to $29.50 for residents who only use sewer