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FUD Board passes sewer rate hike


First Utility District’s board approved a “moderate sewer rate increase” at its meeting Tuesday, Dec. 20.

The increase — which applies only to sewer — will increase the 1,500 gallon residential sewer minimum bill from $15.60 to $16.60 — a 6.4 percent increase, and the volume rate from $3.30 to $3.80 per thousand gallons — a 15.1 percent increase.

Residential bills are capped at $56.50 a month.

The 1,500 gallon commercial sewer minimum bill will increase from $15.60 to $20.60, and the volume rate will increase from $3.30 to $3.80 per thousand gallons for commercial users too.

“It’s a very small increase,” FUD assistant manager Wayne Watson said.


“We’re doing our best to balance out the needs: to keep rates moderate and fund projects TDEC and the EPA are mandating we do,” he added.

FUD’s three-member board of Richard Maples, John Griess and chair Zola Turley unanimously approved the increase.

The three also approved First Utility’s 2012 operating and capital improvement budget.

Watson presented the budget, which estimates an average monthly water usage of 8,300 gallons per customer next year, with operating expenses projected to increase 4 percent a year from 2013 to 2016.

He estimated total operating revenue of about $23,842,000 next year, generated from metered rates, wholesale water sales and various other service charges.

Expenditures are expected to come in at $13,325,722 next year, Watson estimated.

Capital improvement projects for next year include water system improvements along the Old Stage Road/Watt Road extension; various road relocations, including Outlet Drive and the Northshore/Westland intersection, and other line, station and plant improvements.

 

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