City finance studies 21% sewer rate hike | News

The Ladysmith Finance Committee met Aug. 17, discussing the impact a 21 percent sewer rate increase could have on customers.

Deputy Clerk/Treasurer Tony Devine presented cash flow requirements for the city’s sewer department that were prepared by April Anderson of the professional services accounting firm CliftonLarsonAllen. It summarized the cash requirements for sewer department operations, debt service and replacement of sewer department assets. 

Also included was $43,000 in “recovery” funds that are intended to replace the losses that have occurred over the last few years of operating at a deficit. Total cash requirements for a year’s operations with these assumptions is $959,701. 

In 2020 revenues from services generated $803,243, and with no significant change in sewer demand, this is expected to remain static. 

Anderson advised to cover all assumptions, a 21 percent increase would be needed.

Concerns expressed involved the impact of a 21 percent increase on customers. 

Ald. Marty

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