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The Holbrook City Council gave their final approval to an increase in water, wastewater rates and sanitation, as well as an increase to the water adjudication fee.
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The increases include a 25 cent increase per 1,000 gallon water rate for residential, residential out of city, commercial and commercial out of city and 25 cent increase per 1,000 gallon wastewater for residential and commercial. There will also be a doubling of sewer retap fee from $250 to $500 with the sanitation rate to increase a dollar for each trash toter for senior or non-senior. In addition, the water adjudication fee will increase from $1 to $5 each month.
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City administration explained that these increases are necessary to address the aging water infrastructure that the city is tasked with maintaining and to cover the costs of services. The last water/wastewater increase was in 2011 and for sanitation it was in 2003.
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City Councilman Mike Nilsson stated that he was opposed to the elimination of the summer water rate, which has been discounted to promote landscaping use but was to be eliminated with the increases. “Every year someone’s really nice lot turns to weeds. We want our community to look nice but we punish those people who put the most money and effort into their lawns. If we can encourage people with a lower summertime rate we would sell more water.” He also suggested reinstated the Yard of the Month program to encourage residents to add greenery to their property.
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Councilman Tim Dixon wanted it clarified that the increase in the water adjudication fee was only to cover the legal fees to pay for Holbrook’s portion of the consortium’s fees. Sullivan confirmed that and explained that the water adjudication litigation is to determine who has rights to the water of the Little Colorado River between the towns and the Navajo and Hopi tribes and has been ongoing since 1978, but it is now going into a phase that requires more funding.
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“After almost two years of data it shows we’re in the red in that fund. This would allow us to now start breaking even.” He explained that last year money had to be pulled from the utility fund to cover the cost to balance that out for the audit, as accounts are not allowed to run in the red.
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“Right now the city is paying about $67,000 for adjudication and we’re only collecting $20,000. We’re anticipating that the increase will generate $108,000 but we also know that the attorney’s fees and court costs are going to go up because the litigation is going to get hotter,” explained Reyes.
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“The adjudication is not only designed just to fight the court battle, it’s also designed to keep our future rights. So, once the court battle settles, if it ever does, it also allows us to go buy surface water rights as back up. Right now we have no money or means to do that,” stated Sullivan.
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Dixon wanted to know what would happen on those years where more money was collected than spent. Sullivan explained that it would create a fund balance that would carry over from year to year. Reyes added that if the water adjudication is resolved then the city can either do away or reduce the fee depending on the needs at the time.
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The council approved the rate changes but agreed to keep the lower summer water rate, dropping that cost from from $2 to $1.80 per 1,000 gallons of usage for the months of June through September.
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Reyes explained that the cost for sewer throughout the year is determined by averaging the cost of usage from the months of December through March. That figure is used from those months so that the increase in water usage during the summer months is not included.
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Regarding Sun Valley, the council was informed that Sun Valley was annexed into the city over 20 years ago and there’s been several times that the city has tried to have other companies come and take over the water system but no one has shown interest.
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“Historically the water in Sun Valley is not good. With the $5 capital improvement fee that we are collecting from those residents out there that will generate about $5,000 a year for CIP (capital improvement projects). You can buy a tank here or a well there, it’s really no different than what we’re trying to do to improve our system,” stated Sullivan.
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Regarding the immediate needs for Sun Valley, Reyes stated, “We have to put in a new well in a better spot with better water. That will cost between $150,000 and $200,000 and then we need to refurbish or replace one water storage tank at about $50,000.” She added that even with the additional $5,000 the city is still going to have to subsidize the cost.
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In making their final decision the council agreed that raising the rates was not something anyone wanted to do. “I don’t like extra taxes and I don’t like to raise rates,” noted Dixon. Sullivan agreed adding, “Nobody does, but when you have to you have to.” Councilman Peterson noted, “This was a time for the public to come forward to make comments and I interpret that since no one is here that they trust us to do the right thing.” The vote to increase the rates was passed unanimously. The new rates will go into effect on March 19.
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As part of the meeting, the council also approved an award of bid to Bushman & Bushman Construction in the amount of $78,000 for the installation of the ADA (Americans with Disabilities Act) doors for the city. A door will be installed at both the fire and police departments, and two at both city hall and the Holbrook Senior Citizens Center. If there are remaining funds, an ADA door will also be added to the pool and the recreation center. It was noted that the entire project is grant funded.
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