American Fork water rates may sink businesses

AMERICAN FORK — Several business owners here say a steep increase in culinary water rates could kill their businesses.

"This will close me," said Lillian Parker, who has owned and operated the popular Parker's Drive-In for 55 years. "I know of five or six businesses that will do the same."

City officials may take another look at the water rate increases after Parker and other business owners complained to the City Council Thursday of increases up to 600 percent.

The higher fees, which went into effect in November but won't be billed until April, are to help pay for a $47 million general obligation bond for the secondary pressurized irrigation system that voters approved in 2006.

The new rate schedule for drinking water has a $14 base, then goes up in tiers to $6 per thousand gallons for users of more than 100,000 gallons a month. Folks who use less pay a lesser rate.

Business owners at a hearing pleaded with the City Council to more evenly spread the cost of the new irrigation system, which gives them little benefit, with a larger share for homeowners.

The heavy burden placed on businesses coupled with cheaper irrigation water for residents irritated laundromat owner Sylvan Buehler after learning his neighbor's water bill would go down while his business tab would go from $500 a year to $3,000. He also feared a rumored increase in the sewer rates.

"If that happens I know my laundry will close," he said.

Buehler has operated the coin-operated laundry for 44 years, he said, and now faces his most serious challenge. He called the rates discriminatory because many of the people who use his facility are poor.

Former City Councilman B. Kay Hutchings, who has a family dry-cleaning business, said his water bill was going from $1,300 a year to $6,000.

"That makes it tough to compete with the competition in Lehi and Pleasant Grove," he said.

Others also complained that the rate hike for businesses was too steep to pass along to their customers.

Several business owners said they may have to lay off employees in order to pay the high rate.

Large water users, such at the Timpanogos Temple of The Church of Jesus Christ of Latter-day Saints and the American Fork Hospital, also face bills that their representatives said were enormous.

Temple engineer Keith Featherstone said the temple's culinary water bill is expected to escalate from more than $11,000 a year to nearly $70,000. Irrigation water is expected to go from $5,000 a year to $16,000.

Craig Carrier, hospital finance director, said the hospital is expected to see an increase from $34,000 a year to $190,000.

Although the rates have been put in place, Thompson said the council could revise them. But Councilman Dale Gunther said he didn't know how else to charge for the water.

"I don't like it any more than you do, but I don't have a solution," he said.

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E-mail: rodger@desnews.com