Water rates
increasing
By SUE WATSON
Staff Writer
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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