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3 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Medford approves marijuana dispensaries ... Alleged Medford shooter has violent past ... Medford police garage facade improvement dropped ... Medford approves marijuana dispensaries ... Alleged Medford shooter has violent past ... Medford police garage facade improvement dropped ... Water rates may rise 13 percent per year Comment By Damian Mann Mail Tribune MailTribune.com By Damian Mann Mail Tribune Posted Oct. 9, 2015 at 12:01 AM By Damian Mann Mail Tribune Posted Oct. 9, 2015 at 12:01 AM » Social News Water rates in Medford could rise by nearly 60 percent over the next four years, the Medford Water Commission told the City Council on Thursday. “I don’t want to sugarcoat it,” said Commissioner Jason Anderson. He said the water commission had refrained from any big rate increases over the past four years, partially to lessen confusion with customers who have adjusted to a difficult change in billing after the water commission and the city of Medford separated their utility billing system two years ago. The water commission, which increased rates by 5 percent last year, hasn't made any decisions yet on whether it will act on a current recommendation to dramatically raise rates. A rate analysis prepared by HDR Inc. of Seattle recommended raising rates on average for all customers inside and outside the city by 12 percent per year for the next three years, plus a 10-percent increase in the fourth year. The consultants said the increases would help the commission catch up after failing to raise rates previously and would pay for ongoing and upcoming system improvements. Customers inside and outside of Medford would pay different rates under the proposed increases. Outside cities could see an increase of 13.5 percent per year for three years while Medford customers could pay 12.9 percent more per year and all customers would see 10 percent increase in the fourth year. When the rates are compounded, the four-year total is a 58.3 percent increase. “That’s a little daunting for our customers,” Anderson said. On an average water bill in Medford, the first-year increase would be $1.43 per month on top of the current $11.05 for 5,000 gallons, which is an average wintertime use for a household. By the fourth year, the increase would total $6.44 per month for households using 5,000 gallons. Some service areas outside the city, such as White City, could see a 14 percent annual increase, while some special districts outside the city could see a reduction of 12.4 percent, under the recommendation. While the rate the water commission would charge outside cities could increase, the amount would represent a small percentage of a customer's bill in those cities. For instance, the city of Phoenix charges $34 a month during the winter months for water service. The water commission's share of that amount is $2.75. Cities collect additional fees to pay for pipes, pumps and other infrastructure to deliver the water to individual customers. The initial increase this year would essentially be catching up on three years without increases, according to the water commission. Further increases would pay for system upgrades. The water commission receives about $12 million annually in revenues. But ongoing system upgrades will mean the water commission will need $14.5 million in fiscal year 2015-16. By fiscal year 2018-19, the commission will need $17.5 million annually. Councilor Chris Corcoran said he wondered why the commission didn’t foresee the rate problem earlier. “That’s a big pill for me to swallow,” he said. Anderson said the commissioners had balked at earlier increases, in part due to the billing issue. “Staff suggested 9 to 10 percent," he said, "but commissioners didn’t want to do that.” The commission is also looking at options other than increasing rates, including borrowing money from its reserves or floating bonds that could be paid back over a longer period of time. The proposed rate increases would cover only short-term system improvements and annual upgrades. Water commission Manager Larry Rains said costs are going up for construction, and the commission is undergoing a major upgrade at its water treatment plant next to the Rogue River that will increase its capacity to a maximum 65 million gallons a day. The commission estimates it will need an additional water treatment facility in about 25 years, Rains said. Cost of a new treatment plant to increase water supply could run from $70 million to $140 million, he said. Reach reporter Damian Mann at 541-776-4476 or [email protected] . Follow him on Twitter @reporterdm . By Damian Mann Mail Tribune MailTribune.com By Damian Mann Mail Tribune Posted Oct. 9, 2015 at 12:01 AM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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