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Traer Municipal Utilities adopted a 14 percent water rate increase at its March 6 meeting.

The new rates are in response to the anticipated loss of revenue from Traer Manufacturing, which is closing its doors this summer. Pat Stief, TMU general manager, explained to the TMU trustees that Traer Manufacturing uses 10 percent of their current water supply and the new rates will compensate.

Earlier this month TMU customers were informed their electric rates would increase 15 percent with the April 1 billing and continue to increase 15 percent over the next two years, resulting in a cumulative 45 percent increase. This rate hike was also attributed to the loss of Traer Manufacturing business, which consumes 25 percent of Traer electricity but requires a significantly smaller amount of TMU manpower.

The new rate schedule for metered water has an $18 monthly base that includes the first 1,000 gallons. The next 4,000 gallons is $5.55 a month. The next 15,000 gallons is $5.20 and over 20,000 gallons is $4.85.

The new rates are a 14 percent increase to a family that uses 5,000 to 6,000 gallons a month.

At the meeting North Tama School Board Member Gretchen Pargeon asked Stief and the TMU board what cuts they have made internally to reduce spending. Stief said they have reduced some operational costs, but have not cut staff.

Stief said he has already talked to the largest customers in town and will go to any business that wants and help them develop ways to be energy efficient.

Pargeon asked if they had considered any alternative power sources, but Stief said any of those options could not be developed for several years.

 

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