HANNIBAL, Mo. -- Board members of the Hannibal Board of Public Works got a first look at proposed water rate changes during the board's monthly meeting Tuesday that would send the average monthly residential bill up 59 percent by July 2023.
Utility Financial Solutions, based in Michigan, presented its findings on the BPW's water department cost of service, financial projections and its water rate design.
Overall, the company recommends a series of water rate adjustments each year from 2019 through 2023 to help pay for the utility's new granulated activated carbon system and offset the revenue lost when Ralls County Public Water Supply District 1 ceases to be a customer in 2019. The recommendation is a water rate increase of 12.5 percent in each of the first four years, then a 3.9 percent increase in 2023.
A public hearing on the proposed rate change is set for 6 p.m. June 18 at the BPW board office, 3 Industrial Loop Drive. After the hearing, the BPW board would have to decide on adopting the rate increase, which would take effect in early July at the start of the new fiscal year.
The result of this 12.5 percent rate change for the average residential customer would be an increase of about $2.50 a month, BPW Finance Director Abe Gray said, noting the average residential water bill is about $32 a month. Average total monthly water bills with the rate increases each year would be:
º About $35 beginning in July 2019, a 12.5 percent increase.
º About $38 beginning in July 2020, a 12.5 percent increase.
º About $42 beginning in July 2021, a 12.5 percent increase.
º About $46 beginning in July 2022, a 12.5 percent increase.
º About $51 beginning in July 2023, a 3.9 percent increase.
Utility Financial Solutions only looked at the BPW's water rates, so Gray provided a financial opinion on sewer and electric rates. He recommended sewer rates increase by about $1.50 a month for the average residential customer, with electric rates remaining unchanged.