MAYVILLE — The Mayville City Council approved a two-step sewer rate increase at Monday's Common Council meeting. The rates will increase about 5 percent starting May 1 and will increase another 5 percent May 1, 2010. The rates have not been increased since 2002.

"The main reason for this increase is the increased operating costs over the last several years, mainly maintenance, fuel and chemicals to treat the water," Dan Nelson, senior accountant of Virchow Krause and Company, said. "As a result the utility is seeking a modest increase to continue providing affordable sewer services, while minimizing the impact on its customers."

The average household will see a $1.97 monthly increase for each step.

"The impact is pretty low," Nelson said. "They were afraid that if we don't do the rates right now, two years down the road there's the potential that the utility won't be sitting as financially sound as they are now and they might have to borrow more debt and increase rates at a higher percentage."

Nelson compared Mayville's average three-month rates with other communities in the area. Hustisford pays $137, North Fond du Lac pays $101, Brownsville pays $78 and Theresa pays $103. Horicon currently pays $64 but they are also having an audit and are expecting an increased rate.

"The utility isn't starving for money," Nelson said. "There aren't any capital projects coming up in the next year."

Every two years the utility has to do a rate study to determine if they are recovering enough money to cover capital expenditures and operating expenditures. In 2006 there was a 3 percent shortfall and it was decided that they would wait and look at the rates again in two years. Now there is a 12 percent shortfall.

The utility cut staff and went to electric meter reading to save money the last few years.

 "We've cut every way we think we can," Ron Wellner, director of utilities, said. "There are more efficient blowers and things out there, but it's expensive."

The utility has a replacement fund so they can do replacement projects without borrowing money.

"We have talked about transferring over to ultraviolet disinfection, which is the similar to what we have, only without the use of chemicals," Wellner said. "The annual expense is about $21,000 a year less to use the ultraviolet disinfection, but it's about $150,000 to install."

A public hearing was held before the common council meeting and nobody from the public commented on any aspect of the rate increase. Alderman Bob Smith thought the rate increase was disproportionate among the residential customers. The council unanimously voted to approve the wastewater rate increase.

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