The Register-Herald, Beckley, West Virginia

Local News

July 21, 2011

Lewisburg takes first step toward rate hike

By Tina Alvey Register-Herald Reporter

LEWISBURG — Council approved the first reading of ordinances that would authorize the issuance of up to $2.6 million in bonds for water projects and raise rates for city water customers by 15.3 percent across the board.

One of the proposed bonds will raise up to $600,000 to replace the water tank in Fairlea, while the other will be used to pay for engineering fees and other design costs associated with a new water treatment plant. Design costs are expected to run up to $2 million.

Bond counsel John Stump explained bond ordinances require three readings each, with a target date of October to close the financing deal, contingent upon Public Service Commission approval of the Fairlea tank.

“We have not secured funding commitments from banks (yet),” he told City Council Tuesday evening, explaining that due to rate volatility, banks are reluctant to promise to hold a quoted rate more than 30 days.

The water rate increase requires only two readings, with the second one set for council’s next regular meeting on Aug. 16. That vote will be preceded by a public hearing on the issue.

Councilman Mark Etten pointed out the city’s water plant is now 30 years old and is operating 19 to 22 hours a day to keep up with increasing demand. He said the city engineer has advised that optimum operating time is no more than eight to 10 hours a day.

Etten estimated the “real construction” of a new water plant is some three years in the future, due to design and regulatory requirements, but he said the problems with plant capacity need to be dealt with as soon as possible.

“We need to address those limitations now,” he said.

The proposed new rate is $8.71 per 1,000 gallons for the first 20,000 gallons used per month, $6.10 per 1,000 for the next 60,000 and $4.22 per 1,000 for all usage over 80,000 per month.

The minimum charge will be $17.42 per month, equivalent to 2,000 gallons. Currently, the minimum or 2,000-gallon charge is $15.10 per month.



Councilman Joshua Baldwin approached his colleagues with a proposal to look into joining Sister Cities International, an organization that describes itself on its website as “a global citizen diplomacy network.”

Baldwin said, while Sister Cities began after World War II to promote world peace, “it has become a sort of marketplace of ideas.”

Baldwin has already done some of the preliminary work in researching the organization and suggested Lewisburg assemble an informal committee to continue the process.

He said cities typically match themselves up with a comparable city in another land, considering such factors as population, economy and ideals.

“It’s a way to exchange ideas and build friendships,” Baldwin said. “It would be a long-term commitment.”

He noted the city could potentially partner with a civic organization like Rotary or even the Boy Scouts to find a common goal or project to work on with the sister city selected.

Council agreed with the concept and gave Baldwin the nod to continue to build a committee and gather more information.

— E-mail: talvey@register-herald.com

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