For the second time this year, the Metropolitan Utilities District will boost monthly water fees by about $5.
Deb Schneider, senior vice president and chief financial officer for MUD, said this latest increase is being added about five months earlier than planned because summer revenues have fallen short.
The increase will go into effect Aug. 2 but originally had been projected for early next year. It mirrors one that took effect in January. For the average customer, the increase amounts to $4.80 a month or $57.60 a year. It will take the average annual residential bill to about $314.
Schneider said wet and cooler-than-usual summers have depressed earnings.
June revenue is down about $2 million from what was expected. The utility forecasts that July and August revenues will be down another $2 million to $3 million, Schneider said. Bond payments on the Platte West Water Treatment Plant also add to the deficit.
MUD also is cutting expenses, said spokeswoman Tracey Christensen.
Management — about one-fourth of the workforce, or 200 people — is under a wage freeze.
Schneider said the utility and union are negotiating a new contract. The union is working under an expired contract.
As part of its long-term budget projections, MUD has indicated that similar additional annual rate increases are possible for 2013-15.
“We believe that, depending on how aggressive we can get on the expense side of management that we wouldn't need a rate increase until 2013,” Schneider said.
The August increase is projected to generate approximately $15 million in revenue annually for the public utility.
Compared to other major cities in the Midwest, with the water service charge increase, MUD will still be about average. The average annual water bill will be about $30 less than that in Council Bluffs, $10 more than in Denver and $26 more than in St. Paul, Minn.
MUD provides drinking water to nearly 200,500 customer-owners in Omaha, Bellevue, Bennington, Carter Lake, La Vista, Ralston, Waterloo and the Papio-Missouri River Natural Resources District, which supplies water to Fort Calhoun.
“We really feel like we're just trying to make sure this water system stays on good reliable footing,” said Mark Doyle, chief customer officer for MUD.
When we’re asking our customer owners for more money, we take it very seriously. We’re not doing this without thoughtful scrutiny of what we’re doing.”
Contact the writer:
402-444-1084, ellen.hirst@owh.com
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