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NF City Council considers water, sewer rate hikes

Justin Addison Editor/Publisher
Posted 11/10/20

Members of the New Franklin City Council are considering raising water and sewer rates following a presentation of a rate study by Liz Groves. Two options for each water and sewer increases were …

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NF City Council considers water, sewer rate hikes

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Members of the New Franklin City Council are considering raising water and sewer rates following a presentation of a rate study by Liz Groves. Two options for each water and sewer increases were heard at the council’s regular meeting Monday night.

The City of New Franklin currently owes around $40,000 to the Howard County Regional Water Commission. The city is in a take-or-pay contract with the district to purchase a predetermined amount of water, but has fallen short. The amount the city agreed to purchase was based on an estimate of water usage that turned out to be much higher than what is actually consumed.

The City of Fayette is in an identical situation and owes around $100,000 to the district. It is not expected that either city will be required to pay back the district. But both will need to increase water rates to not only comply with their contracts, but to meet water and sewer bond requirements. The Fayette City Council voted last month to increase water rates.

Groves said the anticipated wholesale cost of water for the new budget with be $6 per 1,000 gallons. Current revenues are falling short of expenses. The new rate proposals would allow the city to break even.

She proposed two options for rate increases. The first would increase the minimum base rate to $21 and the usage rate to $9 per 1,000 gallons. The second option would raise the minimum base rate to $21.50 and the usage rate to $8.50 per 1,000 gallons.

Groves said the new rates would cost a family of four about $57.50 per month for the first option, or $56.60 for the second option. The estimates are based on the standard usage of 5,000 gallons per month for a family of four.

Groves also proposed increases to the sewer rates. While the city is operating in the red on its sewer services, the deficit is less severe than that of the water service. The first option would raise the monthly minimum to $24.50 and keep the usage rate at its current charge of $4.75 per 1,000 gallons. The second option would keep the base at the current charge of $23.25 per month and raise the usage rate to $5.10 per 1,000 gallons.

“That’s to get you to break even. It doesn’t put any money aside for major repairs,” Groves told the council.

The council did not take any action on the rates. Members will hold a budget meeting before increasing rates.

In other business, the council approved a bid of $26,160 to construct a new fence around the city’s lagoon. The cost will be entirely paid for by FEMA.

The next meeting of the city council will be Dec. 14 at 7 p.m. Meetings are open and the public is invited.

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