The City of Fort Atkinson has announced that it will be replacing outdated water mains, with funds for the project coming in part from a recently approved water rate increase.
The rate was recently approved by the Public Service Commission of Wisconsin, according to the release.
“The average residential bill will increase about $15 per month, providing over $800,000 per year for main replacement,” the release stated.
Information provided on the city’s website indicates that residents will see an increase of $30 per bi-monthly billing cycle.
Residents will see the increase on their bill beginning Oct. 1.
The city has not pursued a rate increase since 2013, information shared on the city’s website states.
As noted within the release: The municipality will be the third utility in the state approved by the commission to allow customers to directly pay for water main replacement and avoid the expense of borrowing. In Fort Atkinson, the Utility will replace just over 3,800 feet of main per year.
According to the city’s website, The Fort Atkinson Water Utility formed in 1901 and includes over 72 miles of “main,” an underground network of water supply. Subterranean pipes move water supply to meet daily demands of residents and businesses and to water storage components within the system to meet peak demand and are a crucial component of fire suppression. It costs the city approximately $90,000 per year in the repair of breaks within the system.
Within its release, the city noted: Although some of the city’s water main was laid as early as 1908, these turn-of-the-century pipes are not an immediate concern – they are expected to last another 50 years. Most main breaks occur in pipes installed between 1944 and 1972. These pipes had a flawed manufacturing process that reduced their useful life. Known as spun cast water mains, they comprise 25% (18 miles) of the pipe network across Fort Atkinson. Many of these have already failed throughout the city.
“Replacement of spun cast main has been sporadic due to inconsistent funding, with projects occurring in five of the last 12 years, with an average of just over 900 feet per year replaced. A dedicated effort to replace this main is needed and a proactive approach to older, yet serviceable main will follow,” Director of Public Works Andy Selle was reported within the release to have said during testimony given to the Public Service Commission of Wisconsin.
According to the city’s website, Selle said: “The Public Service Commission has always required utilities to borrow for major construction projects because (it) didn’t feel like the existing customers should be paying for something that will last for 50 to 100 years. (The) rationale was at least you spread the cost of this out to maybe more than one generation of customers.”
That method, Selle explained on the city’s website, forces the utility to borrow for almost every replacement and there is a limit to how much money the utility can borrow.
He continued: “When you borrow over a 10-year period you are paying about 20-30% more on that project in interest. You are compounding a problem with respect to cost.”
According to information shared by Selle on the city’s website, other municipalities within the state have come before the Public Service Commission, looking for alternatives to fund water main replacement projects. An innovative idea was to avoid costs associated with borrowing money by seeking rate increases.
He listed Marshfield and Janesville as among municipalities that have engaged with the concept.
“This money is only going to main replacement. It can’t be used for anything else,” Selle emphasized in a statement made on the city’s website. “We have money for roads, but we don’t have a dedicated funding source for water main, but yet our water main is getting older. Every year that network of distribution pipes is aging and if we don’t replace it we’re going to run into a situation where it’s all going to break,” he noted.
The City will pair up road construction projects with water main and sanitary sewer replacements to avoid tearing up the road more than necessary, Selle explained.
The city is in the process of making plans for replacing 5,900 feet (1.1 miles) of spun cast water main on portions of Peterson, Gail, Adrian, Grove, Spry, Grant, and Maple streets in 2022. Federal grant funds will be combined with funds from the rate increase to accomplish a larger-than-average start to the main replacement program, according to the release.
Those interested in learning more can visit the city’s website: http://www.fortatkinsonwi.net/departments/water_utility/index.php.
A story about the city’s water system and how is works is here: https://fortatkinsononline.com/elementor-28799/.
A water hydrant, part of the city’s larger water distribution system, is located near the city’s fire department. The city’s water utility delivers water throughout the city to its customers and supplies water for use by the city’s fire department. Kim McDarison/file photo.
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