Council reduces rates for top-tier water users
Sewer rates to remain as is
December 20. 2010 7:03AM
Brandon’s biggest water users have been granted a six-month reduction in their water rates.
The Brandon City Council approved the adjusted rate schedule Dec. 6, but warned top-tier users to budget for a rate increase beginning next June.
The action came a month after a number of local business owners asked city officials to review the water and sewer rates after receiving their October utility bills. Some business owners say their October bill was nearly double the amount of their September bill.
The council increased water and sewer rates across the board earlier this year in an effort to fund future utility needs. Within the next five years, it’s anticipated the city will need $8 million for a new water tower and improvements to its sewer infrastructure.
Brandon’s water and sewer rates were last increased in 2006.
The 2010 water rate increase varied from 23 to 43 percent, according to Bryan Read, city administrator.
“Forty-three percent on the bottom end equated to a $3.58 (per month) increase, whereas a 43 percent increase to the bigger users was about $600,” he said. For the biggest users, that equates to $6,000 to $8,000 per year increase.
But Read said percentages don’t provide a true picture.
“Remember, when we went through the rates, we made sure that each class was paying their fair share,” he said.
City engineer Jon Brown said when the new rates were established they were consistently adjusted across the board.
“It came down to looking at infrastructure costs and needs,” Brown said. “We had to come to some increase in rates to accommodate those expenses we’re anticipating over the next five years.”
Alderman Roger Brooks reminded business owners that the increase in water and sewer rates should not have come as a surprise. A May 24 public meeting drew just three residents.
“This isn’t something we surprised the public with. I would’ve encouraged you folks to deal with this when we were dealing with this,” Alderman Blaine Jones said at the council’s Nov. 1 meeting.
“This is a short-term fix,” Jones warned last week. “Look for increases – they are going to come.”
For the next six months, top-tier (over 10,000 gallons) users will be charged $3.75 per each 1,000 gallon used over 6,000 gallons instead of $4.50 per gallon used over 10,000 gallons.
Due to the temporary rate reduction, the city will collect about $65,000 less than expected, Read said.
But $65,000 shortfall shouldn’t be detrimental to the planned capital improvements.
“It doesn’t help when we’re looking at the bigger picture,” Read said. “Because it’s about 5 percent of our revenue on an annual basis.
The council made no changes to the top-tier sewer rates.
“The sewer usage doesn’t seem to fluctuate as much,” Read said.