By Ryan Lewis
Correspondent
SOUTH PITTSBURG, Tenn. - In an effort to avoid a future state government takeover of its water and gas company, South Pittsburg city administrators are planning to raise water and sewer rates.
At the May meeting of the South Pittsburg Board of Mayor and Commissioners, city officials unanimously passed Ordinance 719 on first reading, which will raise the water and sewer rates by 28 percent.
The rate hike will not affect natural gas rates, officials said.
"The water and gas company is put under more and more regulation each year," Mayor Mike Killian said. "It's bad to have to do it, but we feel like it is proper public policy to adopt this and bring that budget into balance."
Mr. Killian said the town's water and gas department has been operating in the red for the last two years.
"It's not legal to keep doing that," he said. "We can't keep doing that. If we do that again, the state takes over."
Mr. Killian said if a state takeover did occur, rates could be set without any input from city administrators or residents.
"They could set the rates to whatever they wanted," he said.
South Pittsburg last raised water rates in 1983 and sewer rates in 1988, officials said.
"The truth of the matter is, we are near the bottom (on rates) in Tennessee," Mr. Killian said. "With this rate increase, we will still be below 70 percent of rates around the state."
BY THE NUMBERS* 28 percent: Increase in water and sewer rates for South Pittsburg residents* $5.80: Current average monthly bill* $7.60: Estimated monthly bill after increaseSource: City of South Pittsburg
South Pittsburg Utilities manager Donald Blansett said if the fee increase is approved, the typical monthly bill will rise $2 to $3.
"A $5.80 bill would increase to about $7.60," he said.
Those who use the largest amounts of water could see an increase of as much as $10 per month, officials said.
Mr. Killian said the increase is unpleasant but necessary.
"It would be nice to be able to go 100 years without an increase, but the facts are we have gone 25 years without an increase," he said. "I'm not so sure we should've waited this long."
Ryan Lewis is based in Marion County. Contact him at ryanlewis34@gmail.com.