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City of Starbuck Discusses New Water Meters
Pope County Tribune - Starbuck Times
Written by Chad Koenen - Starbuck Times New Editor   
Friday, 23 January 2009 11:32

The information can be taken and downloaded onto a computer for instant billing. Currently the city relies on people to report the amount on their water meter each month on an honor system.

Koos and VanHout said the meters will also benefit the city in accounting for lost water. Koos cited a DNR report which said there is a big difference in the amount of water being pumped and read at the individual homes in Starbuck. He said the water being pumped is going somewhere, and new water meters could help track the water and help the city recoup some of the $30,000 he estimated it is losing in lost water revenue.

At a low base-bid cost of just over $149,000 for the meters, and just under $225,000 for both the meters and installation, should the city move forward with the project, the meters  would likely be paid for by a service fee added on the water bill.

VanHout said the fees for the meters can be paid for in a variety of ways. One way would be to equally pay for the meters between residential and larger and more expensive commercials meters.

Should the city pay for the meters in this way, monthly meter charges will be $3.20 over seven years for just the meter, or $3.76 over 10 years should the city pay to the have the meter installed by an outside company. If the city were to charge residents and businesses based on the individual cost for the water meters, the monthly rate for residential homes would be $2.74 a month and $3.34 a month for businesses.

However, Starbuck Mayor Steve Dinsmore questioned if the rates would be accurate given the current financial situation in Starbuck. Dinsmore pointed to the recent refunding bond passed by the city in which the city was given a 6 percent interest rate, higher than the 4 percent interest rate for the meter only prices, and 4.5 percent for the meter and installation scenario.

VanHout said he ran the numbers at 6 percent and resulted in a $.30- .40 more in charges per month. However, he said if the city wished, he can rerun the numbers at the higher interest rate and bring them to a future council meeting.

Given the cost of the project when broken down by month, Councilman Tom Goracke said the overall cost of the project isn’t that bad.

However, Councilwoman Jeannie Pladsen said she didn’t think the council should add anything to the taxpayers bills right now.

Councilman Jamie Logan said the council has some time to act on the matter and getting the bids was meant as an informational look at how much a project would cost. He said  given the current financial situation in Starbuck, and not setting aside money for the meters in the budget, the city would need to find a creative way to finance such a project if it proceeded.

In the meantime, Dinsmore suggested to have the meters read at least once a year to help prevent future large amounts of backdue water bills.

In the latest round of checking water meters, the first in a number of years, the city collected close to $28,000 in backdue water bills from its residents. Dinsmore also asked whether meters which are hard to access can be moved so they can be easier to read.

No action was taken by the council.