La Junta sewer rates to increase January 1, 2016

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From the La Junta Tribune-Democrat (Candi Hill):

The La Junta Utilities Board approved a resolution Tuesday that sets new sewer rates for La Junta customers. The rates go into effect Jan. 1, 2016.

The per-month rates are as follows:

Residential Rates — $42.37

Residential West Side Rates (all residential units used as commercial rentals) – $64
Commercial/Municipal/Industrial/Large Customer Rates (all non-residential customers) – $59.21 … unless adjusted. For current commercial users, the adjusted charge shall be computed using the 12-month average water consumption from January through December of the prior year. Commercial accounts will be adjusted annually. A new commercial or industrial account shall be charged a sewer rate of $120 until the annual rate can be established using three months’ usage.

The commercial, municipal, industrial and large customer sewer rate is calculated as follows – Over 7,000 gallons: $3.50/1,000 gallons

Commercial West Side Rates – $89

The commercial West Side Sewer rate is calculated as follows – Over 7,000 gallons: $5.20/1,000 gallons
The minimum rate regardless of water use of residential, multi-dwelling, mobile home and commercial units will be $42.37 per month beginning Jan. 1, 2016.

The rate increase ties in with the city’s process of obtaining a loan to improve the city’s wastewater facilities. City Attorney Phil Malouff said the people who are going to purchase the bonds for the up to $14.2 million loan want to know there’s a minimum amount of revenue coming in from customers. These rates will establish that minimum amount of cash flow. The city has an obligation under the loan agreement and the bond, according to a resolution authorizing City Council to approve the loan, to constitute a revenue obligation of the city payable solely from the pledged property of the wastewater enterprise fund and will not create a debt or indebtedness of the city.

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