Water rates rising one way or another

— The Benton-Washington Regional Public Water Authority will have to raise water rates, either gradually or all at once, Mayor Charles Linam told the Decatur city council at the March 12 meeting.

Linam and public works director James Boston said rates will have to be raised from $2.05 for 2,000 gallons, to $2.25 for 2,000 gallons. They could be raised all at once, or $0.05 per year for four years, Boston said. The main reason for the need to increase the rates is the decrease in water usage over the past few years, he explained.

There are four proposalson how to raise rates, and the 13 member BWRPWA Board of Directors will vote on them this Thursday, Linam said. Boston is a member of board and asked the city council for input on how they would like him to vote on the issue.

“Even if we like one idea, we may not get it,” he said.

BWRPWA added a temporary $1.50 per meter assessment in 2010, and the city of Decatur has not passed the assessment on to customers - a monthly cost to the city of $1,200. The only way to get rid of the assessment is to raise the rates all at once, Boston said.

“If they leave it on, we’re going to have to start passing it on to the customer,” Linam said.

If the rates are raised all at once, the increase will $6 to $10 a month for the average water user, but for Simmons Foods it could cost $6,500 to $7,000 a month, Boston estimated.

“Our biggest water user will want an increase each year, rather than all at once,” he said.

Councilman David Sutton, who is an employee of Simmons Foods, asked Boston to talk to Simmons and find out whether they would prefer a gradual increase, or an increase all at once without a meter assessment.

The meter assessment won’t matter much to Simmons Foods, but willhave more of an effect on residential customers, councilwoman Gina Holt observed.

“I think we need to make it as easy for Simmons to eat as possible,” Sutton said, and noted, along with Holt, that many local businesses are cutting back.

Boston said he had notified Simmons Foods and would be talking to them later in the week.

The increase will probably become effective in January of 2013. If the $1.50 per meter assessment is continued, Linam suggested adding it to water bills in the next few months.

“I hate to cost anyone more money, but if we’ve got to do it, we’ve got to do it,” Sutton said.

News, Pages 6 on 03/28/2012