ELLSWORTH – The Ellsworth Village Board June 5 authorized village staff to work with the Public Service Commission to change how Public Fire Protection charges are collected.
Currently, …
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ELLSWORTH – The Ellsworth Village Board June 5 authorized village staff to work with the Public Service Commission to change how Public Fire Protection charges are collected.
Currently, the village collects PFPs through the tax levy, meaning all tax-exempt properties aren’t paying for the service. PFP charges cover the costs to augment the utility’s water system in order to provide high flows and pressures needed to fight fires, according to a village memo. The costs include a portion of the operation and maintenance expenses, depreciation expenses, taxes and return on net investment rate base attributable to the relevant water plant. The costs also help cover water treatment equipment, pumps, storage facilities, water mains and hydrants. The charge for 2023 is $213,171.
The village would like to charge water customers directly on their water bills rather than through the tax levy. The method used would be the Equivalent Meters Method, with a table of charges based on meter size.
As part of approving the PFP charge, the PSC is requiring a conventional rate study to review the village water utility’s current rates to see if a rate increase is necessary. Village Administrator/Clerk-Treasurer Brad Roy said the PSC study could take up to five months to complete. If approved, the $213,171 would be divided onto people’s water utility bills. The PSC will need to review the current water charges to determine who pays what, Roy said. It’s not a flat rate.
The amount people bill’s would go up would vary, Roy said. In the surrounding area, the charge adds anywhere from $25 to $38 per quarter to the water bill.
“A water rate study hasn’t been done by the village in such a long time, they’re requiring a rate study,” Village President Becky Bessiel said. “They determine what the charge should be.”
“The PSC is all about protecting the customers. The water utility is essentially a business and part of their job is to make sure that business stays operating.” Roy said.
The village last had a rate study done in 2006.
“Unfortunately, we’re not charging enough and we’re in the red,” Beissel said.
Trustee Mindy Anderson worried the extra charges could hurt people who are struggling financially. She said an extra $50 per quarter (hypothetically) could really tighten household budgets.
Trustee Adrew Borner said charging customers directly instead of using tax levy could free up the budget. Trustee Tony Hines had another point.
“The rates here are below all the communities around us,” said Hines.
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