The Bourbon Town Council held the first reading over a proposed ordinance that would implement a hydrant fee when members met Tuesday night.
Clerk-Treasurer Kim Berger explained that about $60,000 is paid out of the General Fund on an annual basis to cover the cost of hydrant fees. In order to help cover that cost, Town officials are proposing a multi-phase, incremental increase to Utility bills with the implementation of a hydrant fee.
Currently, the Town of Bourbon does not charge a hydrant fee. Clerk-Treasurer Berger noted that every other Marshall County municipality has one in place and so do most other towns and cities around the State. She added that one Town of a comparable size charges around $9 for theirs.
The ordinance that came before the council for consideration this week notes that the Town consulted with the firm Baker Tilly to conduct a study over their Water Utility.
The study reportedly found “that rates and charges presently being billed are not sufficient to meet the financial requirements necessary to operate and maintain the Utility, provide for depreciation and pay other expenses necessarily incurred in the operation of the Utility.”
The ordinance also includes the additional charges that would be added to water bills to help supplement the Utility.
In phase one the public hydrant surcharge would be $1.65. In phase two, which would take effect on August 1, 2020, the charge would increase to $3.39.
In the third phase, which would go into effect in August of 2021, it would be $5.09 and in the fourth and final phase which would be implemented in August of 2022, the surcharge would be $6.79.
Those fees are related to a meter size of 5/8 – 3/4 inch. A larger meter size would result in higher charges.
The Council will hold a public hearing over the matter during their next meeting on Tuesday, November 12th. The ordinance will be up for adoption during that same meeting. Berger noted that if it passes, it would go into effect in January of 2020.
