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Water Rates Likely to Rise Again
Water rates will likely go up somewhat for Galesburg water customers in 2013.

That was one of the findings of a Galesburg City Council work session this past week on the city's water system and water rates.

City Public Works Director Larry Cox says quarterly facilities charges will likely go up across the board for customers in 2013, while comsumption charges could also go up somewhat as well.

Cox says there are a number of obligations the city needs to meet which makes raising rates once again necessary.

"It's necessary to raise revenue of $5.8 million in 2013," Cox said. "Bad debt expense requires all customers to pay higher rates. There is a need to ensure enough capital is reserved for future projects. Revenue targets must meet debt service obligations, and the facility fee must fund the water service line repairs performed by the city on a customer's water service line, and help cover the fixed cost."

Cox says one of the problems is outside users of the water system -- cities like Abingdon, Knoxville, and East Galesburg -- their rates are lower than in the city, partly because of the long-term contracts entered into with those cities. But Cox says under contract terms, no more than a five-percent increase can be imposed on them.

The city is continuing to work toward flattening the city's water rate structure.
09 16 12 by Newsroom
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