At Monday’s city council meeting, Mayor Butch Berry presented figures related to whether to raise rates for sewer, water, or both. Berry said the city has made regular bond payments, but has not been meeting the bond covenant stipulating that revenue from water and sewer equal 120 percent of the cost of water. The city is required save another three percent for debt service.
Berry said sewer rates have not increased in eight years, and presented charts from Finance Director Lonnie Clark demonstrating two different ways to raise rates to meet the bond covenant. The popular choice around the council table was the simpler strategy, which was to increase both water and sewer rates by 26.75 percent.
Berry said council would need to have a public hearing on increasing the rates, but an increase did not have to go to a vote of the people. He emphasized this increase does not have an immediate impact on repairing and improving the infrastructure.
Alderman Terry McClung explained, however, that the rate increase would begin to free up money in the Public Works budget for infrastructure projects.
Alderman Mickey Schneider insisted council be presented with sample utility bills making it easy to see the impact of the increase. Berry said he could produce sample utility bills if that’s what council wanted, but said his primary point was to present options.
Alderman Kristi Kendrick objected to raising water rates again.
Calculators clicked around the table determining what a 26.75 percent increase would mean to a family utility bill until alderman David Mitchell mentioned that Berry’s proposal would at last put the city into compliance with bond covenants. “It’s finally time folks step up to the plate and fix the problem,” he said.
McClung mentioned earlier if the city was considering an increase of 26.75 percent, it should be 30 percent to cover contingencies. Schneider reiterated his point, so Mitchell moved to increase by 30 percent in both water and sewer rates and proceed with holding a public hearing, and vote to approve was unanimous.