The outdoor watering ban is having an effect on revenues for the Peachtree City Water and Sewer Authority.

Rate revenues for November 2007 were down $55,000 from the previous year, due in large part to the reduction of outdoor watering. Sewer bills are determined by how much water is used, so the lack of outdoor watering is hurting sewer revenues, said WASA General Manager Larry Turner.

Turner told the authority Monday night that he wanted to make them aware of the issue, but he doesn’t want to suggest a sewer rate increase to make up the shortfall. Turner added that he might make such a recommendation this summer if the drought continues and the water restrictions remain in place.

WASA member John Gronner noted the irony of a possible rate increase in light of citizens’ response to the water restrictions.

If WASA raised its sewer rates to make up for the shortfall, “Aren’t we slapping them in the face for being good citizens?” Gronner asked.

With $4 million in its reserve fund, WASA could conceivably go “a couple of years,” with revenue shortfalls from the drought, Turner said Tuesday afternoon. Because no one knows how the drought will affect rate revenues in the near future, that projection could change, he added.

Complicating matters is that the reserve fund is used for capital improvements, and its healthy balance also keeps a good bond rating for the authority, which helps get better interest rates for financing of projects, he added.

Turner told the authority that most all of the its operating costs are fixed, indicating it could be difficult to find cuts in expenses to avoid a rate increase if the drought continues to affect rate revenues.