Mayor Butch Berry told council on Monday the spending freeze has made a difference, but the city still has not caught up with the monthly cost of maintenance and operation of the water treatment plant. He also noted the city has not raised sewer rates in about 10 years.
Alderman David Mitchell asked how much of an increase in rates, both sewer and water, would it take to cover monthly expenses and bonded indebtedness. Finance Director Lonnie Clark replied it would take a 35 percent increase in sewer rates to break even, and that would not include bond payments. He said it would take only a 10 percent increase to break even for water rates.
Mitchell pressed to get a number council could use in assessing its options, a percentage increase in rates necessary not just to break even but also to cover the bond requirements. Clark said he would do some figuring.
Berry replied the one percent tax he is proposing would be less expensive to a consumer than a rate increase. He said he would send aldermen his talking points about the proposed user fee soon. He also described a cost-saving strategy used by the Carroll-Boone Water District in which they employ a generator during peak electricity times to save on their electricity bill. He said the water treatment plant could employ the same strategy with an adequate generator, which would pay for itself within two or three years.
Other matters
- Council voted to reseat Pat Lujan to the Planning commission. Dr. John House was seated on the Hospital Commission.
- Berry announced there are still vacancies on the Planning, Parks and Cemetery Commissions.
Next meeting will be Monday, August 8, at 6 p.m.