City Officials Discuss Rate Increase for New Plant
The City of Olney has been proactive with informing residents about Olney’s business matters, such as the need to replace the antiquated water treatment plant and the repealed Ordinance No. 89-21 that previously prohibited aboveground storage of propane or butane.
Regarding building a new water treatment plant, the Council decided to increase water bills after hearing recommendations from the finance committee that comprises nine Olney residents and three Council members. Residents and businesses could see an increase of approximately $35 to $50, according to Mayor Pro Tem Tom Parker. He said that because Olney does not qualify for other funding sources such as bonds, the residents must pay for the plant replacement cost. Parker added that it is imperative for the City to replace the existing plant to avoid structural breaches and rising construction costs.
Mayor Rue Rogers explained why the rate increase is warranted to cover an estimated expenditure of $13.5 million to ensure another 100-year life span on a plant that is like the existing one.
“The water plant that we have was built [approximately] 100 years ago. I think it was refurbished in the 50s, maybe again in the 70s, 80s, and then again in the 90s and 2000. It’s a great plant that still produces [more than] 150 million gallons of water a year, which is sufficient for our community and some growth. But, over the last 20 years and over the lifetime of that plant, we put a lot of money back into its maintenance. But the inevitable is at some point, it’s not going to work anymore,” Rogers said.
The decision for the increase was not an easy one, Parker said, noting that they interviewed several engineering firms for several months before deciding to hire an experienced engineering firm based in Wichita Falls that is already familiar with Olney’s plant and the operating system. Parker said there was a consensus that the plant needed to be replaced instead of waiting for something to happen; With that in mind, they turned to a subgroup of the Financial Committee for suggestions to fund the project.
“We have some sharp financial people on the Committee who act as the Council’s extra eyes and ears while bringing a new perspective,” Parker said with confidence that together they chose the best and most cost-effective way to have quality water with minimal disruption. He referenced how expensive it is to repair the existing plant and run it in an emergency mode when the water has been shut off. Also, to help residents get used to paying a higher water bill, the City plans to have a staggered step approach that allows gradual, incremental increases over time.
Interim City Administrator Arpegea Pagsuberon said they will conduct a water rate study specifically for Olney to be sure the final plan is in the best interest of the community.
Rogers said they will not begin any work on the plant until February 2022. “We’ve got to take incremental steps and work toward the plan. If we don’t protect our water, then we don’t have anything else. There are a lot of needs, but we have to prioritize them to keep this community running. The majority agrees that this is the right approach that will set us up to have good clean water for another 100 years—a victory we can all celebrate.”
For additional background information about the water treatment plant, refer to Olney Enterprise archived articles published July 29 and Aug. 5, or review the recorded meetings online at www.CityOfOlneyTx.com.
To share your concerns and obtain more information about the water treatment plant, consider attending the City of Olney Townhall meeting Dec. 9, 6 p.m. - 7:30 p.m. at the Olney Civic Center located at 210 S. Grand Avenue.