By Kimberly McMillian
Correspondent
SPRING CITY, Tenn. — The Spring City Commission passed the first reading of an ordinance that would increase water and sewer rates by 5 percent, with more on the way.
The proposed increase will become effective in July 2011. Then a 3 percent annual increase will start in July 2012 and run indefinitely, officials said.
“We’re not going up” because we want to, said City Commissioner Howard Gilliam.
After a “serious shortfall” in revenues and an increase in the cost of chemical testing of the water in 2010, officials had to “slash over $150,000 in our budget,” said City Commissioner Mike Jolley.
The water department had to accommodate the shortfall, but no jobs were cut.
The commission will have the second reading of the ordinance on Jan. 6.
“It’d be easier for customers” to have a series of smaller increases than to implement a single large one, Jolley said.
Gilliam said that the cost per household for water and sewer rates now averages about $59.91, and the minimum could increase to $62.38.
The garbage pickup costs, included with the water and sewer bill, will not increase.
Gilliam said the state mandates a $1 profit each year and, if the city goes three years without a profit, the state would establish a rate increase.
“[Water and sewer] has to make money,” he said.
Kimberly McMillian is based in Rhea County. Contact her at kdj424@bell south.net.