Water rate hike pales in comparison to ones that loom

Port Washington residents will pay more for their water beginning next year.

That means the average home owner will pay an extra $2.50 on the water portion of their bimonthly sewer and water bill — an annual increase of $15.

“This is kind of an inflationary type increase,” City Administrator Tony Brown said, noting it will generate an additional $89,000 in revenue for the water utility.

The Common Council on Tuesday unanimously approved the rate increase.  

The city has increased water rates a total of 8.9% during the past six years, he said — 5.9% in 2016 and 3% in 2019.

The increase will go into effect with the Nov. 7 to Jan. 1, 2022, billing cycle. Residents will receive these bills in late January.

The increase plays into a recommendation by the city’s water consultant, Short Elliott Hendrickson Inc., to begin preparing for a $15.3 million improvement project at the water plant, he said.

The work must be done to meet current state codes and address deficiencies, primarily regarding backup power and needed changes to the clearwell, that have been identified by the state Department of Natural Resources.

The work, which will extend the life of the plant by 25 to 30 years, will include constructing a new basin and equipment building at the south end of the plant, adding an ultraviolet disinfection system and improving the overall electrical system, as well as adding a backup generator.

Officials last year estimated that the city’s water rate could increase by as much as 45% to pay for the project.

SEH and City Water are currently doing the engineering for the improvement project, and the city is expected to come up with a financing plan for the project by the middle of 2022.

Brown said the city will likely use a low-interest Safe Drinking Water Loan Program or Water Infrastructure, Finance and Innovation Act Loan to help pay for the project.

The WIFIA loan would allow the city to stretch its payment plan for as long as 30 to 40 years, Brown said.

The city is also looking into whether it should use some of its American Rescue Act funding to offset the project, Brown said.

However, he noted, there are other major projects facing the city, including some costly improvements at the wastewater plant, and officials will have to decide if its better to use the money for that work.

Brown said the engineering report is expected to be completed by the end of February. Construction isn’t likely to begin until May 2023, with completion expected in September 2024.

The DNR is requiring the work to be done by 2028.