Harrisburg won't pass water rate increase onto residents

The Harrisburg City Council on Tuesday decided the city will absorb the latest water rate increase from its supplier rather than pass it on to city residents through water bills.

Meanwhile their supplier, the Saline Valley Conservancy District, is worried it doesn't have sufficient credit to borrow the money to dig new wells - which it says Saline County needs.

Harrisburg Mayor John McPeek reminded his council on Tuesday that the conservancy district raised Harrisburg's water rate by 15 percent on May 1, only one year after raising it 13 percent.

"At this time, I cannot support raising our water rate to our residents," McPeek said. "The water and sewer departments will tighten their belts and figure out a way through this."

He said the city and its residents should demand Saline Valley board members explain why water rates have gotten so high.

According to a letter to Harrisburg from SVCD Chief Financial Officer Alison Powles, the conservancy district's financial problems stem from a steady decrease in water usage over the last three years.

Since 2014, 171,321 fewer gallons of water have been used, resulting in a corresponding drop in SVCD income of more than $414,000.

The water provider relies on "gallonage" for its income - money that also is reinvested in the water system itself. Because of the shortfall, district officials say, the SVCD has not met its debt obligations. This will make it harder to sell bonds at good rates to repair the system and drill new wells.

Saline Valley board secretary Robert Wilson said the wells used by the SVCD are 40 years old, and near the end of their useful life.

"We're going to have to go out and drill new wells," said Wilson, a Harrisburg attorney. The three wells are drilled into a section of the Henry Formation, the aquifer that provides water for the conservancy district. At 40 years old, they are about five years past their expected life.

"The costs of drilling a new well are much greater now than they were 40 years ago," Wilson said.

Meanwhile, in Harrisburg, McPeek is urging commissioners and department heads to streamline operations where possible. He also suggested looking elsewhere for water, including Harrisburg Lake.

"The city is going to have to look at every option in the future to control our costs, including looking for a more efficient water source or even look at producing our own water again from Harrisburg Lake," McPeek said.

"Harrisburg Lake is one of our most underutilized assets. I will continue to streamline my department, combining job duties, making water system improvements and make more efficient use of what we already have. That is what we owe our residents."