The Stanfield City Council passed six resolutions during its June 7 meeting, including two that will mean sewer and water rate increases for Stanfield residents.
The water rate increase will include a $3 hike from the current base water rate for all usage levels. For residential use, the new base rate will be $20, up from $17. According to City Manager Scott Pingel, the rate increase will qualify the city for a community development block grant for upgrades to the city water system.
Pingel said the city must charge $43.50 for the first 7,500 gallons of residential usage in order to qualify for the grant. According to Pingel, the state requires the city to apply for a loan to cover part of the estimated $3.65 million project cost.
The goal is to pay off the loan, Pingel said. And that's the number the state is comfortable with.
The state will give the block grant to cover whatever is left over. According to Pingel, the city can structure the rate anyway it likes as long as the first 7,500 gallons of water used by residential customers costs $43.50.
Sewer rates will also go up following the Tuesday night vote. The new sewer rate will be $25 per month with a $3.75 fee for each 1,000 gallons.
The council also adopted the 2011-2012 budget of $5.9 million; passed a resolution accepting state funds; and passed resolutions authorizing several fund transfers and levying property taxes. Pingel called the resolutions basic housekeeping. According to Pingel, property tax rates will not increase, but the city must vote to continue the tax rate each year.
The council also officially approved an agreement with Pilot Corp. that will allow the fuel station to pay $10,000 per month in lieu of a two-cent fuel tax. The agreement also binds Pilot to a 20-year agreement and includes a $2,500 one-time donation from the company to Stanfield's Fourth of July fund.