Warrenton aldermen are considering raising water and sewer rates by 3 percent. Under the proposed rate hike, the average monthly water and sewer bill for residential customers would increase 73 cents, while commercial customer bills would go up $2.47. Residential and commercial customers outside the city limits would see their bills increase $1.40 and $8.72, respectively. The current average monthly bills are $36.72 (city residential), $123.47 (city commercial), $69.99 (outside residential) and $435.77 (outside commercial). The five aldermen in attendance at last Tuesday’s Ways and Means committee meeting indicated they were in favor of the 3 percent hike. They also reviewed 2 and 5 percent increases. Last week’s work session was the first step in preparing the 2011-2012 budget. The fiscal year begins July 1, also the same time when the new water and sewer rates would go into effect. The budget is expected to be ready for aldermen to vote on in June. Mayor Greg Costello said the board has been wise to continue with approving smaller increments rather than requiring to play catchup with larger rate hikes. “When you look at other cities, this is not a high rate,” he said. “(But) I think we need to keep in mind where the public is. I still think we’re still in uncharted water with the economy. I would be in favor of keeping it on the low side.” Under the proposed 3 percent hike, the city’s expects to generate $261,419 for capital improvement projects in 2011-2012 fiscal year. If the rates were increased by 2 or 5 percent, that figure is $237,912 and $308,433, respectively. The city also may start looking into expanding the wastewater treatment plant, which is at 70 percent capacity. That process would likely take up to six years to complete. Terri Thorn, director of operations/finance officer, told the board to keep in mind that water and sewer rates play a part in obtaining a state revolving fund (SRF) loan for a future treatment plant expansion. If a SRF loan was obtained, the city would only have to pay 30 percent of the interest, she said. “If (rates are) not at a certain level, it has to support all of your operations and a percentage of your capital,” Thorn said. “That is part of why we always try to do an increase to keep that number where it needs to be.” Last year, the city raised water and sewer rates 5 percent to offset operating costs that were tied with implementing the Environmental Protection Agency’s Capacity, Management, Operation and Maintenance program. In 2009-2010, rates went up 2 percent. Employees to Receive 3 Percent Raise Also at the April 5 work session, aldermen proposed giving employees a 3 percent raise beginning with the 2011-2012 fiscal year. The raise would cost the city an additional $70,000, according to Thorn. City officials prefer to give employees a raise after not being able to afford raises a year ago. It was the first time in recent memory that city employees did not receive a raise, Costello said previously. The prior year, city employees received a 2 percent increase. Other options considered were 2 percent (which would have cost an additional $46,000), 4 percent ($93,500) and 5 percent ($116,000).