BOUTON, Iowa—The Xenia Board of Directors have announced that they will not have a rate increase for water service in 2017. The announcement was made in a press release Thursday afternoon:
Xenia’s Board and Staff Continue to be committed to supplying our Members with safe, clean and reliable water as efficiently and cost effective as possible. We are always looking at current and future opportunities that will reduce costs and increase water sales, which in turn will be reflected in our water rates.
On September 6, 2016, Xenia Rural Water District closed on a refinancing of its 2006 bond issue for debt service savings. This 2016 refinancing fully retires the 2006 bonds and will provide significant annual interest payment savings, starting in 2017, of approximately $500,000 per year. With these savings, Xenia’s Board of Directors has passed a 0.0% water rate increase for commercial and residential water rates for 2017. It is the determination of Xenia’s Staff and Board that the current rate structure is sufficient to cover all of the District’s operating, financing and capital improvement needs.
The Xenia Board and Staff recognize the impact water rates have on our members, especially with other utility costs rising. We will continue to look for cost savings measures and growth in water revenues through increasing our customer base. This will allow us to continue stabilizing our water rates in the future.