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Tap fees are on the rise in palmetto

By BEN NELMS
bnelms@theCitizenNews.com

Palmetto council members voted Feb. 7 to increase utility deposits and water and sewer tap fees for new customers to help offset the cost of the $9 million bond issue set to upgrade the city’s sewer system.

The council approved a small increase in the water tap fee for new customers. The fee for a five-eighths-inch to three-quarters-inch line was increased to $2,650 compared to the old rate of $2,400. Fees for larger diameter water lines increased proportionately. The fee for a two-inch line, for example, was set at $10,500 compared to the old rate of $9,600.

The council approved an increase in sewer tap fees, based on a formula set at 400 gallons per day (GPD) usage, referred to a one Equal Residential Unit (ERU). The rate for a single family residence was set at $5,000 compared to the former rate of $3,000. Also approved were new fees for a variety of multi-family, commercial and industrial customers. The formula for determining the fee takes into account the number of the determining factor, such as square-feet, beds, seats or apartment units, multiplied by the predetermined GPD and divided by 400 GPD to give the GPD total for that customer. That ERU number multiplied by $5,000 equals the assessed fee. A quadraplex with four, two bedroom units, for example, would pay a $12,500 fee, a theater with 500 seats would pay $31,250 and a restaurant with 80 dining seats would pay $30,000.

Utility deposits were also increased. The deposit for a single family residence increased from $100 to $200 and is refundable after one year. Single family rental units and multi-family rental units with gas and electric were increased from $175 to $200 while total electric deposits increased from $225 to $300. Deposits for commercial accounts remained at $250.

The city’s $9 million bond issue to upgrade the sewer system includes increasing Palmetto’s share in expanding the county plant, running new sewer lines to the plant and replacing some existing lines in the city. The council decided to tie into the county system because it would significantly increase wastewater treatment capabilities and would be less costly than spending the estimated $12 million to establish a sewer treatment plant inside city limits.