McPherson BPU General Manager Tim Maier told the McPherson City Commission on Monday that in order to upgrade the water infrastructure in McPherson, a rate increase may be needed for the first time since April of 2007.
However, for most customers, the increase would be minimal. Maier said that for a typical residential customer with a 5/8 inch residential meter, forty percent of the bills would increase less than two dollars and fifty cents. Eighty percent of the bills would change less than five dollars, and ninety percent of the bills would change less than seven dollars and fifty cents per month.
The board expects to lose a large commercial customer. The loss of that sale will result in about a $300,000 loss in revenue. Also, the board needs to replace at least one mile of water main a year to keep up with the natural deterioration of the system. There are approximately 100 miles of water main in the BPU system.
The rate increase still needs board approval, and is slated for implementation in October.