The city is proposing a 13 percent rate hike for its water and sewer fees. The City Council heard the proposed changes during its Monday work session.
The city charges water and sewer fees for residential and commercial users based on usage.
For water, the city charges residential and commercial properties a minimum of $9.45 for the 1,000 gallons.
The city adds an extra $4.72 charge per 1,000 gallons to properties that use between 1,000 and 10,000 gallons of water. Water usage that's more than 10,000 gallons is charged $5.01 per 1,000 gallons.
In the changes, the city would charge residential and commercial properties a minimum of $10.68 for the 1,000 gallons. It would add an extra $5.34 per 1,000 gallons to properties that use between 1,000 and 10,000 gallons of water. Water usage would be charged $5.66 per 1,000 gallons.
For sewer, the city charges customers $7.08 for every 1,000 gallons used up to 10,000 gallons. If a property owner uses more than 10,0000 gallons, the city charges $8.25 per each additional 1,000 gallons.
Under the proposed changes, the city would charge $8 for every 1,000 gallons used up to 10,000 gallons. If a property owner uses more than 10,000 gallons, the city would charge $9.33 per each 1,000 gallons used.
The changes would have to be approved by the city council and would be implemented in its 2010-11 budget, which is estimated to be at $29.1 million. The council will consider the first reading of its budget during its Monday meeting. The changes would be implemented July 1 with the beginning of a new fiscal year.
The rate increase is being proposed because the city's water and sewer fund continues to face a shortfall in revenue.
Henry Bucci, the city's chief financial officer, said the city in 2004 issued a bond in the amount of $5.6 million to pay for expansions at its Waste Water Treatment Plant.
A company that analyzed the city's tap fees said the bond could be paid off in four years with the use of tap fees.
Bucci said the company projected the city would see enough residential and commercial development that would generate enough revenue to cover the debt.
The tap fees never came in at the levels that were projected, so the city used $6 million in reserve funds to make payments on the bond.
"There was an illusion that it could be paid off in time," he said of the bond.
Bucci said the bond should have been paid off over 20 to 30 years.
Along with the rate increase, Bucci said the city would have to issue a bond between $15 and $20 million to pay off the debt by 2030. The bond would also pay for the grid chamber that was part of the original expansion, but never done, and place money back into the reserves.
Randy Brewer, who was on the Council in 2004, said the city was given bad advice.
"There's no way that the tap fees would have serviced this debt," he said.
Mayor Donnie Henriques agreed, adding that "a mistake was made" at the time the Council voted to approve the bond.
"Something should have been done back then," he said.
The Council also received an informal proposal from architect firm BRPH on renovating the Woodstock Community Church's sanctuary for Council Chambers.
According to an e-mail to City Manager Jeff Moon, the firm would charge $56,900 in renovations. That includes $46,200 in architectural changes, $5,200 in structural changes and $5,000 in mechanical and electrical changes. The overall figure would also include "reimbursables," in which the city could minimize costs by using local printing and eliminating the need for shipping.
If the process begins on June 1, the construction could be done by the end of the year. The city will formally consider BRHP's proposal during its Monday meeting.
The Woodstock City Council also:
* Heard an informal proposal from BRPH that would renovate the Woodstock Community Church's sanctuary into the city council's chambers. The firm would charge $56,900 plus reimbursables to renovate the sanctuary. The Council will consider the proposal during its Monday meeting;
* Special Projects Director Jim Phelps informed the Council that he will send revisions to its property maintenance code to City Attorney Eldon Basham for review; * Directed city staff to loan historical documents of Magnolia Thomas to Preservation Woodstock in its and the Cherokee County Historical Society's efforts to catalogue the documents;
* Mayor Donnie Henriques introduced the idea of term limits of the offices of mayor and city council and asked council members to think about the idea;
* City Manager Jeff Moon informed the council that he will place the revisions to the city's purchasing policy on the Monday agenda for consideration;
* The Council convened into special session to authorize the mayor to sign the contract with the state Department of Transportation to perform the livable communities initiative (LCI) project in downtown;
* Heard 2010-11 budget presentations from the community development, economic development public works and parks and recreation departments. community development's proposed budget is set at $861,102 and the proposed budget for economic development is $152,741. The wastewater treatment plant's budget is $1.8 million, the sewer budget is set at $1 million and the water transmission budget is set at $1.6 million. The stormwater utility's budget is set at $948,350. The streets budget is proposed at $442,706. The building and grounds' budget is proposed at $827,335. The parks and recreation department's budget is $935,641
* Heard a presentation from Chief Financial Officer Henry Bucci on possible water and sewer rate increase for fiscal year 2010-11.
Council members Bud Leonard and Steve Faris were not present.
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