Water Rates Rise to Fund Projects

The Pickens County Water and Sewer Board announced this week it will raise the rates of water usage, effective September 20th.The rates will increase$2.75 for minimum bills. Large usage bills, however, will double. During Monday’s meeting, Water Department Director Larry Coleman explained the need for the increase.

“We have to have $15,000 a month more that we’re collecting right now, which is $180,000 a year,”

he said, adding,

“The reason is that GEFA (Georgia Environmental Finance Authority) mandates that we collect 110 percent of what we owe them in a 20 year period of time, so we can pay them off.”

He went on to say that some of the county’s upcoming projects will cost $2.4 million, which includes $500,000 in forgiveness from the state agency. In order to get the loan for these projects, Coleman said, the county must show GEFA it can pay the agency above and beyond the amount of the county’s other bills.

Coleman suggested the only other option would be to stop installing waterlines and updating infrastructure.

“But, if you’ll notice in Tate,”

he said,

“we’re having (sic) to do that now, because it’s all in pieces.”

During the meeting, Commissioner Robert Jones noted that if a new planned project goes out for bid, the county will need $188,000.

Prior to the board voting, Coleman presented three possible options to gain the needed revenue for the GEFA loan. The first option would raise minimum bills by $6.75 and bring in $280,000 a year. The Second option would raise minimum bills by $4.75, increase large usage bills by 50 percent and bring in $204,000 per year. And, the third option would raise minimum bills by $2.75 and double large usage bill. Also, option three would bring in $199,000 a year, $11,000 over the needed amount. Here, Coleman explained the additional $11,000 was factored in to compensate for a possible increase in interest rates.

Commissioner Jones recommended option three, because, he said, it spreads the cost out more, not to just residential users, but to commercial customers as well. Regarding the large meter usage, Coleman commented that most of these users can afford the increase and that it would not affect the water users who ask for adjustments. Jones added that poultry farms, considered large usage customers, use wells and only use county water as back-up. He also noted the last water rate increase was in 2009.

All members voted for the increase, with the exception of Ray Roberts, who abstained.

See below for more details on the rate increase.