Century Discusses Recommended Water And Sewer Rate Increase

August 26, 2009

The Town of Century held a meeting Tuesday morning to discuss recommended water and sewer rate increases for most customers and new fees for future customers.

Under the rate structure recommended in a rate study conducted by the Florida Rural Water Association, a small business could see their water and sewer bill more than double, and that’s something Council President Ann Brooks does not favor.

“I would not have a problem paying for usage, but that is not what is going on here,” Brooks said. She stated her small business, an accounting firm, uses between 600 and 900 gallons of water per month. Under the proposed rate structure, her minimum monthly bill would jump from $21 to $45.45.

“I have a real problem raising our commercial rate over 100 percent for water and sewer,” she said.

“We have a lot of poor people and a lot of people living on a fixed income,” Brooks said of the proposed residential increase and higher minimum bills. “Let people pay for what they use.”

secoy.jpg“You need to make a profit,” William Secoy from the Florida Rural Water Association said.

The typical residential water bill for a customer using 3,000 gallons per month would increase from $12.45 to $15.95 if the town followed the recommendations in the study from the Florida Rural Water Association. The new $15.95 minimum charge would include 3,000 gallons; the current minimum water bill is $9 for 1,500 gallons.

Commercial customers would see their minimum jump from $9 for 1,500 gallons to $19.95 for 3,000 gallons.

Both commercial and residential customers would see an increase per 1,000 gallons over the 3,000 minimum to $2.78 to $3.16 per 1,000 gallons. The current additional charge per 1,000 gallons is $2.27. Institutions and churches would pay the residential rate.

Sewage rates would also increase if the water association proposal were to be approved by the town.

The current sewage rate is $13 for the first 6,000 gallons and $3.50 per additional $1,000 gallons for residential and commercial customers. For the first 3,000 gallons, the recommended rate is $12 for residential customers and $25.50 for commercial customers. Each additional 1,000 gallons of sewage would cost $3.

Under the rate proposal, a family using 8,000 gallons of water per month would see their water bill increase from $23.75 to $30.13, and they would see their sewage bill increase from $20 to $27. The total monthly increase for that family would be $13.38, or $160.56 per year.

waterbill.jpgA business using an average of 8,000 gallons per month would see their water bill jump from $23.75 to $34.13 and a sewage increase from $20 to $40.50. The total annual increase would be $370.56.

Secoy told the council that there should be a yearly review of water and sewer rates, adjusting the rate to maintain a profit while taking increases in the Consumer Price Index into account.

“Customers don’t mind those little rate increases,” he said. “It’s those 30, 40 percent increases they don’t like.”

The Florida Rural Water Association proposal recommends that the town also charge a “capacity” fee for new hookups, in addition to the $125 water connection fee and $1,000 sewage impact fee currently charged. The study does not offer a specific recommendation on the amount of the new fee. Secoy said that a typical capacity fee is from a several hundred to a few thousand dollars.

He said a connection fee should be in the neighborhood of  $350 to $750 for a new meter. Customers that were establishing service at a location where a meter is already installed would not pay a connection fee.

Capacity fees could not be waived, but connection fees could be waived as part of a financial incentive package for a new business, Secoy told the council.

The Town of Century has not increased water or sewage rates since 1995. The water association recommends that the town make yearly rate increases based upon the consumer price index.

The council instructed Secoy to take a closer look at different usage levels among the town’s water and sewer customers, especially commercial, and return with a second recommendation. Secoy said he would be able to complete the task in about five days, giving the council time to work any rate increases into their new budget.

Pictured: William Secoy from the Florida Rural Water Association addresses the Century Town Council Tuesday morning. NorthEscambia.com photo, click to enlarge.

Comments

4 Responses to “Century Discusses Recommended Water And Sewer Rate Increase”

  1. Emma Fletcher on August 27th, 2009 12:15 pm

    How are people suppose to live? There are N-O jobs here, and the people on fixed incomes are not getting an increase. That mean less money because everything else is going up. Thank you council members for understanding!

  2. john on August 26th, 2009 5:59 pm

    Raising the rates would also promote water conservation among the users. Its a good idea.

  3. Casandra on August 26th, 2009 4:06 pm

    Wanting something for nothing? I hardly see it as that. I see this as the town council understanding the needs of its constituents for once! Kudos to them for taking time to listen to the proposal and understand how it will effect the citizens and business owners of Century.

  4. Typical on August 26th, 2009 2:13 pm

    Century: always wanting something for nothing. Go outside the city limits and you’ll pay $16.00 for 2,000 of water at Central Water Works. So $15.95 for 3,000 gallons is a steal, which is something most folks in Century can relate with.