May 7, 2022
By: Dwayne Page
Another increase in rates may be coming for Smithville water and sewer customers with passage of the 2022-23 budget this summer.
During last Monday night’s budget committee workshop, Mayor Josh Miller and the aldermen discussed the possibility of raising rates by 2% or more. A rate study will be conducted to determine by how much. Water and sewer rates were increased 2% this past year to help offset costs.
City water customers currently pay $7.40 per thousand gallons. Rates for customers outside the city limits are $11.10 per thousand. City sewer customers pay $6.89 per thousand.
City officials believe its wiser to implement smaller rate increases now rather than larger hikes later to keep incoming revenues ahead of expenses and that is also the recommendation of the state comptroller.
“Last year the comptroller recommended that we go up 2% on water and sewer rates every year,” said Mayor Miller. Now chemicals are costing more, pipes are costing more, and we are looking at giving (11% cost of living) raises to employees. Of course, with those raises, some of it will be (paid for) in the general fund and some of it in the water and sewer department and that is going to be more costs. We were thinking to let Buddy Qualls, the one who did a water study for us before look at this to give a recommendation on if we need to go up more than 2% this year. I think we need to do this (study) but I am not going to be in favor of a major water hike either,” said Mayor Miller.
“I believe we can keep it below 5% but we may need more than 2%,” said City Administrator Hunter Hendrixson
“I just know chemical costs were higher than what we budgeted for the year when I was looking at it last month and I am afraid other costs are going to be a lot more than we planned for this past year and as inflation has continued. I don’t think 2% will be adequate but I would rather have the professional analyzing it give us some guidance,” said Janice Plemmons-Jackson, the city’s financial consultant.
Under state law, if a utility continues to operate at a loss for more than two years and doesn’t address it, the state has the authority to force rate increases to make it solvent.
The city is also considering increasing its contribution to the Smithville-DeKalb County Rescue Squad each year from $1,000 to $2,000.