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Sunday, December 2, 2018

Message from the mayor gives his view of options for sewer-rate cuts; first reading of ordinances Monday

By Grayson Vandegrift
Mayor, City of Midway

It’s time to set a new baseline for our sewer rates – one that reflects our much improved financial situation.

Tomorrow night, I will present two options to the city council for cutting sewer rates – a 25 percent cut (which I prefer) and a 15 percent cut. The reason our current sewer rates are what they are is because they were raised in 2002 to cover the bonds issue for the new sewer plant. Now that we’ve paid off the debt on both the old and new plants, I believe it’s time to set a new baseline sewer rate.

Governments too often take money when they need it but never give it back when they don’t. Our upcoming sewer project to camera and clean out the old lines in town will not require us to borrow money, but future projects likely will. At that time, we may have to raise rates temporarily to pay off the loan of such a project – but it will only be for the life of the loan – then, rates will be reduced back to the baseline.

The question is, what should that new baseline be? I believe it should be 25 percent lower, bringing the rate just below the levels they were before the city had to build a second sewer plant because of failed technology in the old plant. The numbers and projections show (they are available at City Hall or here) that even with a 25 percent rate cut, there is still plenty of new money coming in because we are debt free in our sewer fund, and we’ve got plenty of money saved for rainy day funds.

The ordinance requires two readings, the first of which is scheduled for our regular council meeting on Monday, Dec. 3 at City Hall. The second readings, and vote to approve one of the ordinances, is set for Dec. 17 at City Hall. Both meetings begin at 5:30 p.m. and members of the public are welcome and encouraged to attend. Thank you for taking the time to read this and on becoming more informed on the issues, that’s part of what makes this community so great.

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