Commissioners discuss proposed 2023 budget, revision of water rates  | News | richmondregister.com

2022-05-22 01:48:25 By : Mr. David Wang

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Variably cloudy with scattered thunderstorms. Potential for severe thunderstorms. Low 66F. Winds SSW at 5 to 10 mph. Chance of rain 50%.

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The Richmond City Commission held a special workshop meeting on Tuesday morning, where they discussed revising rates on the water systems of Richmond and were presented the first look at a proposed budget for fiscal year 2023. 

City Manager Rob Minerich gave a presentation to the commission on the proposed fiscal year 2023 budget

“So I’ll go ahead and summarize the budget message. Our current fiscal year, fiscal year 2022, has been a good year,” Minerich said. “Current projections have us coming in under budget between four and six million dollars. As the close of business May 13, the general fund had a balance of approximately $28.7 million and the contingency reserve fund or rainy day fund balance was $14.1 million. In the proposed fiscal year 2023 budget we have included a million dollars from the general fund to the rainy day fund to get us closer to having at least six months of operating costs... This year we have increased our projected revenues overall by approximately 15% over the fiscal year 2022 budget.”

Some items proposed in the budget included $1.25 million for downtown streetlight replacements; $199,363 budgeted for Madison County 911 support; $150,000 for stormwater projects on Allen Drive, Brookline Subdivision, and the Richmond Industrial Park; $60,000 for fire hydrant repair; $100,000 for a new fire truck; three new officers hired for the Richmond Police Department; a crime scene evidence technician position; a social worker position and a finance clerk position. 

The commissioners were given copies of the proposed budget, with Minerich requesting any changes or suggestions being submitted a week from May 27 with an approval and first reading set for June 28. 

The current water rates were set by ordinance number 97-26 in June 1997 – with later revisions coming in 2000, 2002, and 2005. The Richmond Utilities Board completed a study which determined Richmond Water, Gas, and Sewage Works needed to raise rates to its customers due to inflation, increased operating costs, and the cost of capital improvements. 

The city commission signed off on the first readings of Ordinances 22-18 and 22-19. These ordinances would become legal after their second reading. 

They entail the following changes be made to water purchasing rates by July 1, 2022 in its current form:

• A flat rate of $2.79 per 100 cubic feet of water used by institutional users Eastern Kentucky University, Baptist Health Hospital, and other organizations of a similar nature and purpose. 

• The Milford Water District would see increased rates on the following scale – Block 1 (the first 2,000 gallons of water - minimum bill of $21.58), Block 2 (next 2,000 gallons - minimum bill of $7.13/1000 gallons), Block 3 (Next 2,000 gallons, $6.07/1000 gallons), Block 4 (excess of 6,000 gallons - $5.32/1000). 

• Rates for all other customers within the city limits of Richmond – Block 1 (first 300 cubic feet of water used - minimum bill of $12.47), Block 2 (next 400 cubic feet - $3.71/100 cubic feet), Block 3 (next 5,000 cubic feet - $3.67/100 cubic feet), Block 4 (Next 5,000 cubic feet - $2.67/100 cubic feet), Block 5 (excess over 10,700 cubic feet - $2.66/100 cubic feet). 

• Rates for users of Richmond, Water, Gas, and Sewage Works who live outside the city limits  of Richmond – Block 1 (first 300 cubic feet of water used - minimum bill of $15.79), Block 2 (next 400 cubic feet - $4.69/100 cubic feet), Block 3 (next 5,000 cubic feet - $4.26/100 cubic feet), Block 4 (Next 5,000 cubic feet - $3.56/100 cubic feet), Block 5 (excess over 10,700 cubic feet - $3.40/100 cubic feet). 

According to the ordinance, the schedule of rates for all customers excluding wholesale customers will be adjusted annually on bills mailed after July 1 of each year to reflect increased operation costs for Richmond Water, Gas, and Sewage Works increased operation costs. The annual adjustment will be equal to the average percentage increase in the Consumer Price Index for all Urban Consumers (U.S. city average) published by the U.S. Department of Labor, Bureau, and Statistics. That annual adjustment will never be less than zero. 

Ordnance 22-19 is set up regarding wholesale users of Richmond’s water systems. 

The ordinance defines wholesale users as the Madison County Utility District (maximum volume limit of 52.3668 mg a month), Kirksville Water Association (maximum volume limit of 7.8120 mg a month), and water districts of a similar nature and purpose. 

• Wholesale rates – a flat rate of $2.72272 per 100 cubic feet. If the prescribed monthly allotment of water is exceeded by 3%-10%, the wholesaler will pay Richmond Water, Gas, and Sewerage Works a rate per cubic feet 10% more than the flat rate of $2.99499 per 100 cubic feet. If the monthly allotment is exceeded by over 10% ore more, they will pay a rate per cubic feet of 30% more than the flat rate of $3.5934 per cubic feet. 

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