Eustace discusses rate increases

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Eustace discusses rate increases

Thu, 02/08/2024 - 15:56
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City Council Members Randy Johnson (from left), Tim Meyers, Chuck Powers and Mayor Dustin Shelton present the new town square signs at the Feb. 1 council meeting.

EUSTACE–Eustace City Council reviewed and discussed raising the rates on water, sewer, and trash at the Feb. 1 council meeting. Rates have not increased in the community since 2019, despite the increase the city has endured.
In a study done by the city, Eustace has one of the lowest water/sewer/trash rates in the area. City Secretary Sandy Lane explained, “Our account with our water is slowly going down and down so we are not producing enough money to maintain or grow.” Mayor Dustin Shelton shared a rough draft of a rate increase saying, “The numbers we came up with were significantly higher but the shell shock to the community would be a negative impact so we reduced those numbers in the base fees and usage fees to soften that impact and buy us some time.” Shelton continued, “This is not a long-term fix, this is going to be a six month to a year, before we have to re-evaluate this.” 
 Shelton shared a rough draft that eliminated tiers in the sewer pricing yet maintained the cap. The average household should see an approximate increase of $15. Shelton continued, “The last three years, the increase of cost of business has surpassed the last ten years of the same period. We are already behind, and we are having to play catch up. In my opinion, this is a minimal catch up at best.”
 Speaking about the rate increase Shelton said, “This is something that will help us and reduce the negative impact to the community.”  These fees are in-line with other water districts that are bigger and smaller, and we are still on the low side when it comes to water systems our size.”
City Councilman Chuck Powers stated, “I don’t want to do it, but we have to stop the bleed.” Councilman Tim Meyers commented, “It’s more than fair. It is still a shocker, but it is more than fair.” Shelton said, “On a positive note sometimes when things go up people are more conscience on what they are doing with their water.“ Shelton stated that the rate increase may cause people to reduce water usage by watering the yard less,or fixing leaks and drips. “I think it will, to an extent, make people think a little more wisely on water usage and how much they waste,” stated Shelton.
After reviewing the rough draft and making changes, the council came up with the following rate increase: 
For residential water the base amount includes 1,000 gallons and the rate will increase from $25 to $30 per month. 
The three tiers will be:  
• Up to 5,000 gallons the cost will be $4.50 per thousand gallons.
• 5,001 to 10,000 gallons the cost will be $5.50 per thousand gallons.
• 10,001 and up the cost will be $6.50 per thousand gallons.
For residential sewer the base amount includes 1,000 gallons and the rate will go from $26 to $35 per month. The tiers were eliminated and replaced with $5 per 1,000 after the first 1,000 with a cap of $65.
For commercial and outside city limits, base fees for water will increase from $48 to $65.  
The three tiers will be: 
• Up to 5,000 gallons, $5 per thousand gallons.
• 5,001 to 10,000 gallons, $6 per thousand gallons.
• 10,001 gallons and up, $7 per thousand gallons.
Commercial and outside sewer will be a base of $65 and $5.50 per gallon with no cap. Trash will increase from $14 to $19 a month per household. The council approved the rate increase to begin in March.
In other business, the council;
• Approved interlocal agreement with Henderson County for elections. Three city council seats are open for re-election.
• Approved $50,000 to purchase three used police vehicles.