The town of Signal Mountain will raise its water rates by 15% starting July 1 if an ordinance establishing new rates for the municipal water system passes on second reading April 22.
The ordinance passed 4-0 on first reading at the April 8 town council meeting, for which Councilwoman Susannah Murdock was absent.
Water bills for nearby cities
(5,000 gallons per month, residential)Walden’s Ridge Utility District: $45.30Signal Mountain (new rate): $35Lookout Mountain: $34.22Dunlap: $32.21Chattanooga: $27.41Cleveland: $23.27Source: MTAS
During the March 11 meeting, councilors had decided to postpone the vote to change the rates until all members were present. Councilman Bob Spalding was absent for that meeting. The vote was postponed again when Councilwoman Amy Speek was absent for the March 25 meeting. But Murdock told Town Manager Boyd Veal to inform the council not to let her absence prevent them from proceeding with the vote April 8.
Councilors did decide to postpone making a decision on whether to keep or sell the water system until everyone was present. If the new rate ordinance passes on second reading, it could affect at least one of the purchase agreements, in which rates would be calculated based on the town's rates at the time of purchase.
Preliminary sales contracts have been negotiated with both Tennessee American Water and Walden's Ridge Utility District.
No one spoke about the rate increase during the citizens' comment period April 8, which Mayor Dan Landrum said he found surprising.
The 15% rate increase - which will be followed by two more 15% increases over the next two years - is based on recommendations made by the University of Tennessee Municipal Technical Advisory Service, which conducted a rate study for the town.
"None of us want our water rates to go up, but in order to properly maintain the water system and due to repairs that need to be done, this is what has to happen," said Landrum.
Some residents will actually see their rates go down, particularly single residents, Landrum added.
As recommended by MTAS, the new ordinance eliminates the previous 4,000 gallon minimum usage charge. Residents will instead be charged a base rate of $6 plus the amount of water they use, which will be at a rate of $5.80 per 1,000 gallons, explained Veal.
For example, under the new rate structure, a single resident who uses 1,000 gallons would be charged $11.80. Under the current rate structure, that user would pay $20.20 for the same amount of water, said Landrum.
For residents whose rates do go up, their sewage fee - which is based on the amount of water used rather than what is charged for the water - will remain the same, he said.
Spalding said there's no doubt that rates need to go up, but questioned whether the increases in the ordinance will be enough to cover expenses related to the system, such as employee salaries and major repairs.
The recommendations from MTAS were based on information provided by the town, including a five-year outlook of its anticipated rate schedule and capital project schedule, said Veal. The town also submitted water system employee salaries for MTAS to use as guides when setting its rate recommendations.
Councilors will take a second vote on the ordinance at their April 22 meeting, to be held at Town Hall at 6 p.m.
Spalding, who announced that he will be stepping down from his post July 15 due to other commitments, requested that the ordinance permitting miniature goats be added to the agenda for April 22. That ordinance passed on first reading prior to the November election, and the council decided to postpone the second vote until the new council was seated.
Spalding also requested a discussion on the town's chicken ordinance be placed on the agenda for the same meeting.
Email Emily Crisman at ecrisman@timesfreepress.com.