Blanding increases water and sewer rates

by David Boyle
News Director
Members of the Blanding City Council approved an increase for water and sewer rates, tabled an increase for out of town power and natural gas rates, and made a plan to fund activities at the senior center at the latest meeting.
The Blanding City Council approved an increase for water and sewer rate increase at their August 27 meeting. The approval follows weeks of discussion with the rate increase to increase water rates by six percent and 1.8-percent on sewer.
That sewer base rate increase equals 50 cents a month, with average water users seeing an increase of $2.63 per month.
The rate increase is less than recommended by a water rate study. The study revealed while the city is in the positive for its revenues, when depreciation of assets is taken into account the city is operating in the red.
City Manager Trent Herring explained “These are about 30 percent of the proposed increase by rural water, so not even near what they proposed. Will there need to be another in a couple years? There might need to be.”
Council member Chris Ewald added his support. “I hate to see rates increase but this is a pretty conservative increase.”
Council member Erik Grover added that the city will need to be proactive in raising funds to fund the water system, especially as the city grows and faces issues like current needs to improve the rainwater systems.
Members of the council held an extensive discussion as part of the meeting about rainwater needs following the heavy monsoons that had swept through the city over the past month.
Members of the council voted to increase the water and sewer rate.
At the meeting, the council also held a similar discussion about possibly increasing the rate charged for power and natural gas for customers outside of city limits. The council ultimately voted to table the item to ask that the two increases be brought to the council separately for consideration.
In his report, Herring shared that the city services 149 natural gas accounts outside city limits, making up 12 percent of the customer base and growing. Blanding City provides power utilities to 279 accounts outside of the city making up 16 percent of customers.
Reasons for higher rates for outside city limit accounts included incentivizing annexation within to the city, as well as covering the costs for servicing utilities further out of the way and raising funds in order to bring on an additional employee to cover possible gaps with just one employee in the gas department.
Blanding City Council member Charlie Taylor asked that the resolutions raising rates for outside city limits for power and natural gas customers be separated. Taylor signaled he is not in support of raising rates for natural gas customers.
Taylor argues that an increase in volume sold to customers will increase margins rather than raising rates. Also adding that the natural gas line is being checked at least monthly with many of those accounts coming off not too far off the main line.
Council voted to table the resolution to have the two items split. Herring shared he would come back with more information as well including historic trends for natural gas, how profit margins change with growth or shrinkage, as well as projected growth.
Members of the city council also approved a plan to ask the county if they can pay for activities held at the Blanding Senior Center.
The County-owned and operated building is almost entirely dedicated to providing meals to senior citizens in the county. Some Blanding seniors have expressed interest in offering additional classes and activities, but the limited funding for the building and employees means there is little overlap to run the activities.
Blanding City provided an estimation for utility costs to use the building as well as pay $25 a class for an employee to unlock and oversee the building.
The city estimated paying the county $2,200 to use the building and pay for an employee to offer five classes throughout the year.
Blanding council and staff shared in a previous meeting that the county said they are willing to review a proposal like this with the City of Blanding footing the cost for additional offerings at the senior center.
Members of the city council also approved a resolution to provide a 25-year land lease at the airport to Blanding resident Travis Shumway.
The agreement would allow Shumway to build a hangar on a 100 by 100 foot property at the airport . The contract being put together at a cost of 25 cents per square foot annually for the first 10 years of the contract, although no payment would be required the first three years as the hangar is built.
The hangar would be located to the south of the cities western terminal building and would be the first of five areas within the city plan for potential future hangar development. Members of the council approved the resolution.
City council also approved a $500 donation to the annual San Juan ATV Safari, which is September 18-21.