Study: Monterey Needs To Increase Water And Sewer Rates

Monterey needs to improve revenue in both its water and sewer operations with residents paying half of what they should.

That finding shared with the Board of Aldermen Monday night as Consultant Sarah Chandler of consulting firm Jackson Thornton shared study findings.

Chandler said the biggest discrepancy showed in sewer rates.

“You’re bringing in 73 cents of every dollar that you need to bring in, that’s a shortfall of $327,000, so work to be done,” Chandler said. “Work to be done to get the system where you need to get it.

Chandler recommended raising water rates over two years and raising sewer rates gradually over three years to make up for the under-recovered revenue.

“You can give your water customers a break in year three hopefully,” Chandler said. “And at the end of the three-year period that would bring in $185,000.”

Chandler said the proposed increase would not make up for all the under-recovered revenue, but it would be a step in the right direction.

“At the end of the three-year period the projected recover is 80,” Chandler said. “So you go from 73 cents on the dollar to 88 cents on the dollar.”

Chandler said the town would have to re-evaluate at the end of the three-year period to figure out what steps to take next.