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Special city council meeting centers on water rates for next budget

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DECATUR - The cost of a drink of water is likely to go up next month, but the city council is still hashing out exactly how much to charge.

After a lengthy discussion during a council study session Saturday morning, Mayor Paul Osborne said he believes a rate increase is necessary.

"We are looking at some kind of increase because we are losing money in the water fund every year," Osborne said.

A 25 percent increase has been included in the city budget, which has not been approved, but is scheduled to take effect May 1.

Keith Alexander, director of water management, told council members that a 25 percent increase is necessary to balance his department's books, especially because of several costly future projects and decreases in revenue from the loss of industry in recent years. Those projects include improvements to the south water treatment plant and water main extensions.

"We have not adjusted our water rates in almost 10 years," Alexander said. "We have not adjusted our water meter service charge in 26 years."

Even if the cost is raised as proposed, at 25 percent in the coming fiscal year and 4 percent in each of several years after that, Alexander said it still will be a great deal.

"Decatur's average family of four currently pays less than one penny for each five gallons of water delivered to their home 24/7, 365 days per year," he said.

The council will hold another study session at 8 a.m. Saturday, April 26, to continue to discuss the water rate, in addition to other budget issues, including possible hiring of additional police officers and firefighters.

Council member Shad Edwards said he wants more information before setting the new water rate.

"We haven't heard anything from the public about

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what a rate increase would do to the business and residents," Edwards said, adding that the council might decide on a 10 percent increase or something else. "I'm sure their costs have gone up, but I don't know if they can justify a 25 percent increase. A 25 percent increase in the city represents a 50 percent increase in Mount Zion, Long Creek and other noncity residents.

"They are getting a really huge increase. This does not cover the costs of building an additional reservoir if we decide to do this later on. At some point, we need community feedback. I'm hoping we hear from them. Coming to the council meeting is the best way for their voices to be heard."

Huey Freeman can be reached at hfreeman@herald-review.com or 421-6985.

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