Advertisement
News

Utility rate hike eyed

Members of the White Hall Street, Water and Sewer Committee agreed Tuesday to recommend increases in municipal water rates, water deposits, water reconnect fees and monthly garbage collection charges.

Mayor Noel Foster asked the committee members meeting at City Hall to consider the rate and fee hikes and recommend their adoption by the White Hall City Council later this month.

Under the White Hall’s contract with Waste Management the private company can request rate increases to offset higher collection costs, including fuel, Foster said, adding “it has been years” since the waste collector received an increase in the monthly rate.

Foster recommended increasing the fee for weekly residential trash collections from $12 to $12.50 a month, noting Hardin Water Association members pay $15 for the service; the monthly rate is $15 in Pine Bluff and $16 for residents of rural, unincorporated areas of Jefferson County.

White Hall collects fees for weekly trash collections for Waste Management, adding the charge to monthly statements for water and sewer services.

To avoid operating a deficit in the water department, Foster recommended raising the monthly charge for the first 1,000 gallons of water used by a household or business from $5.50 to $6; increasing the rate for the next 2,000 to 10,000 gallons from $2.20 to $2.70 a month; and the monthly charge for more than 10,000 gallons from $1.74 to $2.24.

“I don’t want to increase rates, but I don’t have a choice,” Foster said, noting the department had a net loss of $25,000 in 2011 as a result of replacing two pumps of city wells and replacing water meters.

White Hall now buys water from United Water Arkansas, but the municipality is responsible for maintenance of the distribution system, including water meters.

Many of the meters have been used for 30 years, he added, and do not reflect accurate water consumption. The water department has replaced meters for high volume users – schools and businesses – with new meters resulting in an increase in “billable water sales,” Foster noted.

Foster said he anticipates the average household will see a $2 to $3 increase in monthly water charges, with little impact on low volume users. “I don’t want to go up, but we don’t have a choice,” he said.

He recommended increasing the deposit fee for water service from $50 to $150, explaining that renters who move out may be gone for 45 days before the city is notified and the current $50 deposit is not adequate to cover outstanding water charges.

Raising the reconnect fee for water service from $30 to $50 will basically cover the water department’s labor.