Senoia Council to consider water rate hike

Thu, 04/16/2009 - 3:44pm
By: Ben Nelms

Senoia City Council will take a look at increasing water rates by 22 percent at the April 20 meeting. If adopted it will be the first rate increase since 1998. A public hearing on the issue will take place immediately prior the council meeting and follows a discussion held at the April 7 meeting.

Amounting to a 22 percent increase, residential rates would increase from $11.50 to $14 for the first 1,500 gallons, from $3.50 to $4 for each 1,000 gallons used up to 10,000 gallons and from $3.50 to $6.50 per 1,000 gallons over 10,000 gallons.

Commercial rates for the first 1,500 gallons would increase from $15 to $22.50. Rates per 1,000 gallons from 1,500-10,000 gallons would be raised from $4 up to $4.50 per 1,000 gallons, while the rate above 10,000 gallons would jump from $4 per 1,000 to $6.50.

And for industrial use, the $25 rate for the first 1,500 gallons would increase to $28.50. Usage per 1,000 gallons for 1,500-10,000 gallons would go from $4.25 to $4.75, with usage per 1,000 gallons for amounts over 10,000 gallons increasing from $4.25 to $6.50

The last increase in water rates came in 1998, said City Administrator Richard Ferry.

“The cost of providing water has gone up. Water rates need to be based on the cost the city incurs,” Ferry said, citing examples such as employment costs and those required to construct and operate the system. Not lost in the discussion was a Georgia Environmental Protection Division requirement to upgrade the water plant. “The city had cut back to operate the system.”

Ferry said revenue sources such as tap fees have been used to operate the water system even though those dollars should not have been used for that purpose.

Like other communities in the drought-stricken metro Atlanta area, Ferry said that decreased consumption had resulted in decreased water revenues while the city’s purchase of water from Coweta County had increased.

“They’ve gone up 40 percent on the bulk rate. We’re probably losing money when we buy water from the county,” Ferry said, adding that while there is no requirement to purchase water from Coweta, the option would be to install another pump in the areas being served by county water.

Asked by Mayor Robert Belisle when the new rate, if adopted by the council, would go into effect, Ferry said it could effective on the next billing cycle after adoption.

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