Saluda enacts water/sewer rate increases for major system repairs

Published 7:33 pm Wednesday, January 20, 2016

By Leah Justice

leah.justice@tryondailybulletin.com

 

With a 70 percent water loss and a growing capital improvement plan (CIP) of water and sewer system needs, Saluda City Council approved water/sewer rate increases in order to pay for necessary repairs to the system.

Saluda commissioners met Jan. 11 and approved the increases, including a $10 per month system maintenance fee and increases per 1,000 gallons of water usage.

The rate increases will begin on Saluda customers’ February bill. The city sent out a letter to all customers alerting them of the increases.

Currently (prior to the increases), Saluda’s water/sewer bill includes a $7.50 user fee to pay for the interconnect line connecting Columbus, Saluda and Tryon. Columbus and Tryon also have user fees for the interconnect.

In February, the user fee will be removed, with an added system maintenance fee for $17.50 per month, referred to as a system maintenance fee.

The city’s current inside city limit water/sewer rates are $5.62 per $1,000 gallons and $6.99 per $1,000 gallons for outside city limit customers.

The new rates will be $7 per $1,000 gallons for inside city limit customers and $8.37 per 1,000 gallons for outside city limit customers. Those rates are on top of a $20 base rate for water and a $20 base rate for sewer for inside city limit customers and a $37.30 base water rate for outside city limit customers.

The current average water/sewer bill for inside city limit customers is $81.22 per month, based on a customer using 3,000 gallons of water.

The current average water bill for outside city limit customers is $65.77 per month, based on a customer using 3,000 gallons of water per month.

The new rates beginning in February will mean the average inside city limit customer’s water/sewer bill (3,000 gallons per month) will be $99.50 and the average customer’s water bill outside city limits will be $79.91, according to the city’s figures.

Commissioners also approved future rate increases to begin in January 2017 and January 2018. Beginning in 2017, the system maintenance fee will increase to $22.50 and the price per gallon of water used will increase to $8.25 per 1,000 gallons for inside city limit customers and to $9.62 per 1,000 gallons for outside city limit customers.

In 2018, the system maintenance fee will increase to $27.50 for all customers with inside city limit rates increasing to $9.25 per 1,000 gallons and outside city limit rates increasing to $10.62 per 1,000 gallons.

Saluda City Manager Jon Cannon said in order for the city to start paying for its capital improvement plan, increases were necessary as the city is looking at approximately $2 million in needed projects. Cannon said with the increases, the city is anticipating an additional $10,000 per month in revenue and $120,000 per year.

“We would like to start three projects this year,” Cannon said. “I hope to be digging the first projects in the spring. The CIP runs for 20 years but I’m hoping to outpace that.”

The first three projects that are expected to begin this spring include water and sewer line replacements along Florida Avenue, water and sewer line replacements along Shand Street and replacing the Laurel Drive lift station and replacing the discharge line from the lift station, which is approximately ¾ of a mile long.

Cannon said the city is planning to begin the Laurel Drive lift station project first.

The city has hired Jonathan Hollifield as the engineer of the projects, with the plans already in the works, according to Cannon. Cannon said the city is well on its way to being able to pull permits on all three projects for 2016, saying the city wants customers to see where this extra money is going as soon as possible.

 

 

City of Saluda’s current and future water/sewer rates

 

  Average bill inside city Average bill outside city
Current $81.22 $65.77
February 2016 $99.50 $79.91
January 2017 $112.00 $88.66
January 2018 $123.00 $86.66

 

Saluda’s project list and cost estimates

 

Project Name Total
Refurbish 200k Gallon Tanks/Water $43,880
Update primary booster station/Water $79,140
Main St./176 Interconnect/Water $14,290
Columbia Ave./Water & Sewer $197,530
Shand St./Water & Sewer $320,630
Hart St./Water & Sewer $160,160
Ozone Dr. Interconnect/Water $26,060
Chestnut St. to NC 176 Lift Station /Sewer $162,610
Poplar St. Sewer Line Replacement/Sewer $41,590
Henderson St. Lift Station to SR1142 Lift Station/Sewer $481,330
Hwy. 176 Lift Station Refurbishment/Sewer $83,160
Laurel Drive Lift Station Replacement $50,000
Florida Ave Water Sewer Replacement $64,000
Total: $1,724,380