The committee formed to look into the options gave a report Tuesday at the city council meeting which began with clerk Bob Riggs going over the city’s finances.
The committee consists of Riggs, councilmen Russell Jones and Doug Nash, utilities director Wayne Thomas and water/sewer receivables Theresa Galiszewski.
Riggs informed the council the city was facing a $240,000 budget problem. The problem includes the 13.3 percent increase passed on by LTRWC which calculates to a $141,000 annual increase. Also, the city is facing a $55,000 CPI for salaries, an increase in the retirement program, utilities and fuel prices.
“We will have to do something,” said Riggs.
The city of Russellville currently purchases 300 million gallons of water from LTRWC for $1,090,000 and sells approximately 190,000 million gallons annually. With the new rate increase the city will pay $1,236,000 for the same amount.
Councilman Russell Jones said he suggested the city pass on a 5.9 percent increase to the citizens. This breaks down to an additional $3.73 per month on an average water bill for 3,000 gallons.
“Any place you buy a product when their costs go up it has to be passed down. I think this would be a fair increase to the citizens,” said Jones adding, “People take a lot more of an increase on their cells phones and satellites which are things they don’t need. Water is a commodity they can’t do without.”
Councilman Doug Nash said Logan Todd reported the increase was due to lack of consumption and they were not selling as much water because people were cutting back on their usage.
“With this new increase people will cut back once again and then there will have to be another increase. This is a no-win situation,” said Nash.
Councilwoman Pat Bell agreed. “We need to get a hold of these water rate increases. Something needs to be done. This is ridiculous what we have to pay for water. It’s past ridiculous,” she said.
Councilman Jimmy Davenport said he would not vote to pass “one red cent” on to the customers at this time.
“Water has been our biggest enemy since I've been on the council. I will not be for passing one red cent onto the customers right now,” Davenport said. “Not when we just had a meeting two weeks ago saying we were losing 43 percent of our water somewhere. We need to do a blitz and cut that unaccounted for water to 30 or 35 percent first. There are other things we can do.”
The committee will be looking into the increase once again and bring their findings back to the council.
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