Cloverdale council looks into raising utility rates

CLOVERDALE -- The Cloverdale Town Council once again attempted to focus on the big picture at its meeting Tuesday night: Finances

Buzz Krohn recently completed a utility rate study and found that although the town's finances are not in terrible shape, the town is just not bringing in enough money.

"Things have not changed that dramatically," Krohn said. "They haven't improved much either."

In 2009 the town saw a 14 percent rate increase in utilities across the board. However, that increase is no longer enough.

The recent utility rate makes light of the fact that the town has also lost 20 percent of its water sales due to the closing of Econo Lodge, as well as some other commercial properties.

"We were in very tough financial conditions with the wastewater last year," Krohn explained. "The 14 percent increase was just not enough to address the needs."

With nearly $3.3 million in wastewater debt, the town will be forced to address the issue before it's too late.

"I can tell you, when you don't have working plumbing, it's not fun," Krohn said. "Water and sewer -- you don't see it. Many take it for granted."

The wastewater issue is not Cloverdale's only problem as the town currently has $750,000 in outstanding water bonds, which it needs to take care of before too long.

"In reality we're still treading water on the water utility," Krohn said. "We're going to need about $70,000-75,000 a year to retire this debt."

Currently, the operating revenues are breaking even with the operating expenses. However, that does not help with the debts.

It is expected that the town will increase utility rates in the next coming months.

Krohn recommended a 16 percent increase, but nothing has been officially decided.

The town will be hosting a meeting at 7 p.m. Tuesday, Aug. 28 for residents to come and voice their concerns on the issue.