MT. VERNON — The city council will be approving an ordinance to raise water rates during a special meeting on Monday.
The rate increase — which was discussed for approval during the budget workshops earlier this month — finally settled at 2.4 percent.
The council discussed a 1.8 percent increase, a 2.4 percent increase and a 3 percent increase. The increase was determined to be necessary to cover a contractual increase in water prices from the city supplier, Rend Lake Conservancy District, as well as to cover the city financial policy.
The financial policy, which was enacted last year, calls for the working fund to have a balance equal to one month of operating funds on hand. The budget for the fiscal year 2014-15 required a balance of $585,536. The 2.4 percent increase will bring the fund to $62,802 short of the fiscal policy goal. The 3 percent increase, which was discussed in previous workshops, would have put the fund $25,502 short of the goal.
According to information presented during the city council budget workshop on April 22, for a family using 3,000 gallons of water per month, the rate will increase the water bill from $44.92 to $46.27. Another ordinance will also be presented on Monday, one which amends the 2010 bond issuance to include additional capital expenditures for the city. The ordinance amends the term project to mean “the acquisition, construction and installation of South 34th Street, Veterans West and Davidson South street projects, interchange sewer extension, phase 2 interchange water sewer, Times Square water tower, Conger Street, South 26th Street and North Davidson water lines, Wagner Road sanitary sewer lift station, park vehicle and fountain at VP lake, a grasshopper mower, police fingerprint machine, squad cars and police equipment, fire station alerting system, Public Works dump trucks, bucket truck and backhoe, storage cabinets and, as applicable, related fixtures, equipment, facilities, improvements and costs.”
In addition, the city will also hold a budget hearing and approve the 2014-15 budget, which will cover the fiscal year which starts on May 1.
The budget hearing will be held 3 p.m. Monday in the Old Council Chambers at City Hall, immediately followed by the special council meeting.