Council speeds up sewer rate hike

Fort Sumner will implement its next sewer rate increase a year earlier than expected after action last week by the village council.

Acting on a suggestion from auditor Geoff Mamerow of Southwest Accounting Solutions, LLC, the council voted unanimously to increase sewer rates effective June 24. The increase had been originally scheduled for July 1, 2023.

Village residents will see the base charge for sewer service increase from $28 to $36 per month for up to 4,000 gallons of water use. Additionally, residents will pay a $.0025 charge per gallon treatment charge for water use over the 4,000-gallon minimum.

The minimum rate for commercial businesses and entities will be $36, increasing from the current $31 monthly minimum charge. The quarter-cent charge for each gallon of water use over the 4,000-gallon minimum will be levied as well.

In presenting the audit report for the 2021 fiscal year, Mamerow noted that the village is violating a covenant of a federal loan because the sewer department is operating at a deficit and must be subsidized by the city’s general fund.

The USDA loan requires the village to generate enough revenue from its sewer system to cover all expenses, loan payments and funding for maintenance. The village has been unable to apply for more federal loan money to rehabilitate the aging sewer plant due to the violation of the operational margin covenant in current loans.