SEWER RATE INCREASE 2021
Historically, the Shelby Sanitary District #2 has been able to keep sanitary sewer rates below average. After many years of steady rates, increases are now required to cover the expenses of the sewer utility. The proposed rate for 2021 is $98/quarter. Please see the attachment below for a comparison with other communities in the area.
Shelby Sanitary District #2 is working on a new sewer treatment contract with the City of La Crosse. The City has plans to improve the Wastewater Treatment Plant with an estimated project cost of 60 million. La Crosse has estimated increases for the contract sewer rate of 20% in 2022 and 31% in 2023. In addition, Sanitary District #2 is currently paying non-contract rate to the City of La Crosse. Please see the following link for more information on the City of La Crosse project and Sewer Rate Study. https://www.cityoflacrosse.org/your-government/departments/utilities/sewer-utility/sanitary-sewer-utilty-projects-planning-activities/facility-planning-sanitary-sewer
Direct operational expenses for the sewer collection system have also increased. One of the largest expenses for 2020 and 2021 has been projects to line sewers and reduce the inflow and infiltration (I&I) of stormwater. The District has also purchased sewer flow meters which will be required to measure volume for the sewer treatment contract with the City of La Crosse.
ANNUAL SEWER FUND EXPENSES: Approximately $350,000.
REVENUE: 825 Customers x $98/quarter x 4 = $323,400
WATER RATE INCREASE 2021/2022
The Shelby Sanitary District #2 was overdue for a water rate increase to adequately cover operating expenses and new capital expenses. The District applied to the Public Services Commission (PSC) in July 2020 to increase water rates. The previous application to the PSC for a conventional rate increase had been in 2011, creating a 10-year span with no major increase. The rates were adjusted for inflation in year 2016 and 2017.
On March 11, 2021, the PSC approved a two-step rate increase. Step 1 is necessary to get the revenue caught up with operational expenses and will be effective for the 2nd quarter of 2021. Step II is tied to debt for a new well located in Arbor Hills. The new well is one piece of a Master Plan to expand fire protection and municipal water service to additional areas in Sanitary District #2. The Step II rate will be implemented once the current well project is complete, estimated to be 1st quarter of 2022. See the final PSC order at the following link:
Public Service Commission Final Decision Order on the application of Town of Shelby Sanitary District #2 for approval to increase water rates.
Document ID: 406621
Although this increase is significant, it is still within the range of other communities. Please see the attachment below for a comparison.
See the Water Master Plan at the following link: