Small town's water rates could go up 60 percent

Small town's water rates could go up 60 percent »Play Video

LEBANON, Ore. - Engineers in Lebanon say the city's water system is on its last legs, but the solution is not cheap -- and it'll hit residents right in the pocketbook. 

"The do nothing option has passed," said Dan Grassick, Lebanon's city engineer.

Tthe water treatment plant in the city needs to be replaced -- fast. Parts of the original 1946 plant are still standing, like the old-brick raw water intake building. However, if an earthquake much above a 5.0 hits the valley, "It's likely that that building would be damaged and become a pile of bricks," Grassick said.

Here's the problem: The plant is running at capacity with just 24 hours of storage, which means if something goes wrong, the taps go off in 24 hours.

The proposed solution: a new $23 million water plant.

But to pay for it, water rates may go up 60 percent over the next four years to start.

Mayor Ken Toomb told KVAL News he can pretty much rule out a one-time hike. "The 60 percent might be graduated up -- but that's a tremendous burden on the taxpayer or ratepayers," Toomb said.

It's a price at least one couple in town is willing to pay.

"It's unfortunate that in these economic times we just have to bite the bullet and do it," homeowner Greg Nervino said.
 
"It's time now to take care of our city. Nobody likes to pay higher rates, but it's a reality," Pam Nervino said.

A city council decision to build or not build could come late this month or March.  

City Manager John Hitt said decisions on the water rates won't come until later in the spring.

Average Lebanon water fees right now run about $32.50 per month. Water bills could hit $52 in four years and $64 a decade from now, although the actual rates have not been determined.