As has been tradition since 2002, residents of Independence Township will see their sewer rates increase to cover ‘pass through? rate increases in the Clinton-Oakland sewage disposal system.
Director of Public Works Linda Richardson recommended an increase of $10 per quarter at the July 7 board meeting, including $1.66 per 3,200 cubic feet of water increase this year, as well as an additional two-thirds of last year’s rate increase.
Richardson said she made a miscalculation when converting the cost from flow base to Residential Equivalent Unit and only passed on one-third of the cost.
‘Last year, our increase was $10.30 and we only passed on $3.25 cents,? she said.
Trustee David Lohmeier said this highlights the danger of flow rate versus REU.
‘As we go forward, if we decide to stay with the REU versus flow rate, we run this risk,? he said. ‘We are going to have to be really diligent on converting the flow base charges through.?
The proposed increase would cost Independence Township homeowners an extra $74.75 per quarter in 2009.
Richardson said from 1986 to 2002, the township received a $10.11 increase, but never passed it on to residents.
‘In 2002, we had a rate study and at that time, it was recommended that we pass thru to our customers our increases that we received from Oakland County,? she said. ‘Since 1986 to this current $1.66, the township incurred $35.66 in increases, but we have only passed on $27.75 to our residents.?
Trustee Neil Wallace suggested holding off on the increase and ‘rolling it into one, comprehensive (increase with other recommended increases coming in the future).?
‘I don’t want to delay this forever, I want to take the responsibility for it, but I think that we need to sort it out in a way that makes sense,? Wallace said. ‘Make a determination that we’re going to go to a flow base and not be having folks get an increase now based on this, a decrease later based on conversion of flow rate and then another increase based on catch up and having to take care of the loan problem.?
Treasurer Curt Carson also agreed on setting the increase aside until a later date, he wanted everything ran through a model created by the township’s auditors Plante Moran.
‘In this model they have the increases for the county set up in the model so each year as we look at the rates when we put this program into the model it should tell us what we need to do,? he said. ‘Lets look at the whole picture, run everything through the model and come up with something that we understand and agree to and then go to the ratepayers and obviously have to sell our case at that time.?
Carson moved to postpone the increase and directed Richardson to run the pass through, through the model created by Plante Moran to see how it effects now and five years into the future by the July 21 meeting; however, the discussion has been further postponed to the Aug. 4 meeting.
‘I only want to have to do this one more time. I haven’t had a chance to meet with Plante Moran I wanted to make sure our numbers are jiving, I don’t want to be coming up with numbers and they come up with something else,? Richardson said. ‘It didn’t give us enough time to coordinate.?