Thursday, November 18, 2010
Water rates increasing
By SUE WATSON
In order to meet the financial obligations on bond indebtedness in the rural area and to maintain existing water service in the city, the Holly Springs Board of Aldermen approved a rate increase for most customers at the first meeting in November.
The total revenue generated by this increase will be about $100,000 a year, said Don Hollingsworth, general manager of the utility department. Without this increase in the minimum bill for water, the utility risks running in the red in cases where replacing equipment is necessary.
“The total revenue last year for the industrial class was $5,500 while replacement of one large meter costs $7,500,” he said. “The utility pays for these meters when they wear out.”
The methodology used in determining the rate increase was the Equivalent Residential Unit - a formula that spreads the cost of service uniformly among the classes of users.
Thirteen commercial users and three industrial users will see their minimum bill go from $12 a month to $300 a month, Hollingsworth said.
A general commercial customer will see their minimum bill go from $12 a month to $16.
The large industrial and commercial customers will see a larger minimum bill, but the water rates are the same.
“Some customers will actually see a reduction,” he said.
Currently, rural customers pay $10.31 a month. Their minimum bill will be increased under this ERU formula to $16 a month, he said.
“This equalizes the cost for water across the customer classes,” he said.
In other business, the board of aldermen:
• opened bids for construction of an equipment shed at HSUD. Low bidder was Southern Commercial at $26,000. CIG Constructors of Corinth bid $29,900 and Robert Builders Inc. of Ripley bid $68,450.
• approved advertising for a position in Parks and Recreation.
• declared seven police service vehicles for salvage and one for auction as surplus property. A Polaris 4-wheeler was also added to the salvage list.
• heard a report from public works director Michael Crittle, who recently attended a conference for directors. Crittle advised the board on the types of projects that are likely to be approved for funding including a likely emphasis on green projects.
• expanded a motion by alderman Harvey Payne at the October meeting to include making available direct deposit of payroll checks to the employees of the utility department.
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