SAVANNAH, Mo. - City officials are trying to keep water rate promises made to voters who supported bonds and building a new water plant. But the city administrator discovered some flaws that will force the city council to make some hard choices.

Nineteen percent of the water produced for Savannah isn't billed to anyone, said Mike Fisher, city administrator. The reason appears to be the meters, which are reaching the end of their lives. That's one of the reasons behind the push for a new electronic monitoring system that should result in increased meter accuracy.

"We're certainly not wanting to go backwards," said Mayor Billy Kretzer. "We don't want to have to go back to lifting the lid and looking down to read a meter."

The goal is to get that water loss down to or below 5 percent, Mr. Fisher said. "If the city can reduce its losses to 5 percent or less, then no later than January 2011, I would go back and ask the council for a lower rate on one of the three proposed add-ons," he said.

The city will keep its promise to maintain the base rate for water, but is proposing three additional fees.

New meters the council and mayor voted to purchase, to replace the 10-year-old meters, require a 35-cent monthly fee to pay for them. There will need to be a fee for a depreciation account. Currently, that account has $78,000 but it needs to be $200,000, Mr. Fisher said.

And the reserve account associated with the bond

issues must reach and maintain a balance of $750,000. That will require a 25-cent monthly fee.

The other major flaw is in the rate charged to wholesale customers. Currently, the city only has one wholesale customer - Andrew County Public Water District No. 3. The city appears to have lost $90,000 in revenue last year, but the problem extends back to 2004, Mr. Fisher said.

"If we're really selling it too cheaply, then we are going to have to do something," said Connie George, an Eastern District council member. Council members have asked for records so they can check the figures themselves.

"Certainly, there was a change in August 2008, when the new plant went on line," Mr. Kretzer said. "So now we're trying to address that issue by beginning negotiations with District No. 3."

Marshall White can be reached

at marshall@npgco.com.