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Surcharge proposed on R'ville sewer bills for a year
by Chris Cooper-Managing Editor chriscndl@hotmail.com
6 years ago | 186 views | 0 0 comments | 2 2 recommendations | email to a friend | print
Russellville's sewer customers may see a $5 increase per month on their bills as soon as Dec. 1, according to a motion made by the city council Tuesday night.

Councilman Gene Zick, who gave a water/sewer committee report Tuesday, said the sewer department is low on operational funds and suggested applying a $5 surcharge per month for one year to help generate additional money.

He said he and the committee reviewed the need for funding in the sewer account. “When the Kentucky Rural Water Association prepared our water and sewer rate study in April and May of this year, they recommended an increase in the sewer rates in order to establish a depreciation account and to make funds available for improvements, major repairs, increases in normal operating and maintenance expenses and increases of salaries and recovered expenses,” said Zick.

Zick continued explaining his position saying, “Based on the recommendations on June 14 we proposed an ordinance to increase the sewer rate; however, this was placed on hold because of the anticipated revenue that was expected to be received from the treatment of lechate from the county land fill.

“Apparently the May 31, 2005 budget estimated $525,268 revenue from the lechate. As we know now the Waste Management group have made several improvements in their process, have gotten ride of their pond water and are treating their lechate themselves. Plus the amount of rainfall, as we all know, has been below normal, consequently no lechate revenue.”

Zick told his fellow council members that the committee had looked into two proposals. One is to take Kentucky Rural Water's recommendation of a rate increase, which would bring rates from $6.23 per 1,000 gallons to $8.23 per 1,000 gallons. Zick said this increase would have customers who average 4,100 gallons a month paying an increase of approximately $7.81 cents a month. This, said Zick, would generate the city approximately $434,222 annually.

Zick said the second proposal would impose a $5 surcharge per month per household for one year and would generate the city $246,000 in a year. Zick said he felt this to be the most feasible decision and the easiest for the customer. He said a rate increase would more than likely be kept on where a surcharge could be reviewed after a year and fall off if the council doesn't wish to implement it again.

Council voted unanimously to accept the second proposal of adding a $5 surcharge monthly to all residential, commercial and industrial customers for one year to be reevaluated at the end of that year by the council.

Councilman Lanny McPherson said he wanted to express to the citizens where the money that is generated from the surcharge will go. Zick said it would be used as back up for the Johnson Street project, the water tower project and any type of maintenance rather than having to go to the bank and borrow money. Zick said right now the city is strapped.

Mayor Yassney said the council needs to think about deducting the budgeted lechate revenue because she said right now they city has a large shortfall.

Councilman Mark Stratton said with the change of water meters that should help. Yassney said that wouldn't be a quick fix. Zick said they wouldn't see new meters until next year but that was why he wanted the surcharge for one year.

Yassney said the motion isn't in stone at this point. She said the council will have to either amend the current ordinance regulating sewer charges or pass a municipal order. She said the motion to accept the $5 a month per household would have to be per meter as well.
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