>La Grande Observer | Union and Wallowa Counties' News Leader

The La Grande City Council is considering rate increases for both water and sewer services during the next budget go-round in June.

If approved, a 2 1/2 percent rate adjustment for water will mean a 34-cent increase to the residential base rate, which is currently $13.41. If approved, the base will increase to $13.75.

The wastewater budget proposes a 5 percent increase, which would raise the monthly residential user fee from $29.26 to $30.72, an increase of $1.46.

The driving force behind his department’s proposal, said Ray Crapo, street/sewer superintendent, is inflation.

“We’re beginning to see it. It’s affecting everything from the cost of freight to the plastic pipe we use,” he said.

In addition, although the department has already paid for nearly $725,000 in construction costs for the new wastewater treatment plant, the first of 17 annual payments to the state revolving fund for the new wastewater treatment plant is due this year. That payment is $375,000.

“Even with a long-term projection of a 5 percent rate increase over the next five years, our projected costs are such that our bottom line continues to decrease,” Crapo said.

Rate increases proposed by Water Superintendent Lee Manor are intended to be set aside for future projects. Two big ones, he said, are replacing pipes between the Morgan Lake and Second Street reservoirs, the costs of which will be paid for out of the proposed budget, and a current review of the Beaver Creek Dam fish passage and the city’s surface water rights with the U.S. Forest Service.

“Whatever we end up doing at the dam, it will be expensive,” said Manor.

In comparing the rate increases of the two departments, Manor said, it is important to note that it costs a lot more money to run a wastewater facility than a water facility.

“For example, their operating and construction costs are a lot higher. They have to do a lot more treatment than we do and their systems have to be installed a lot deeper,” he said.

Both department heads met with City Manager Robert Strope and the city council Monday night to review the proposed rates increases for the new fiscal year.

“This is what you will be proposing at the upcoming budget meetings?” asked Mayor Colleen Johnson.

Manor and Crapo both answered yes.