The Plymouth City Council passed the proposed water and sewer rate increase ordinances on first reading Monday night.
During a special meeting held Monday, Oct. 30, the city council learned that with Bay Valley Foods and Del Monte closing at the end of year water and wastewater treatment revenue losses are imminent. To help bridge the gap, an ordinance outlining a one-time raise in the water rate of 12 percent to begin Jan. 1, 2018, was proposed. In addition, an ordinance detailing a three-phase wastewater rate increase was proposed. It would allow for a 10 percent increase in wastewater rates beginning Jan. 1, 2018, with another 10 percent increase on Sept. 2, 2018, and a third 10 percent increase in March of 2019.
According to Utility Superintendent Donnie Davidson, the average customer using 5,000 gallons per month will see an increase of $5.10 after the first phase that includes the water and wastewater increase. The same customer would see an increase of $2.72 as a result of the second phase of the wastewater increase and another $2.98 increase in the third phase of the wastewater increase.
If other companies can occupy the vacating businesses and produce similar water and wastewater treatment numbers, the third phase-in would be rescinded from the ordinance.
As per order, the city council members don’t typically hold much discussion on ordinances when they are passed on first reading by title only, but Councilman Jeff Houin had a comment before the meeting moved forward.
“I know there’s some concern about the lost revenue and it is something to be mindful of,” stated Houin. “It’s very likely that we’ll have to take some action if we’re not able to fill those buildings. I think it would be better to give ourselves some time so we can get a better idea of what the prospects are to find other businesses to fill those locations and also to give ourselves a more accurate view of the actual costs of not having those users anymore. I know we’re not voting on this tonight, but I just want to make it known that I am not supporting these rate increases at this time.”
Consideration of the second reading of both ordinances with discussion is expected at the next council meeting on Monday, Nov. 27.
