Water rate increase on the way for Sebree customers

by Matt Hughes

J-E News Editor

Residents of Sebree will most likely be seeing a 17 % increase in their water rates at the end of November. At Monday night’s Sebree City Council meeting, council members voted unanimously to approve the first reading of an ordinance that would increase rates on the bills that will be mailed out on November 27, 2013.

“Nobody likes increases,” said Mayor Ozzie O’Nan. “I certainly don’t, but we’re just to where we have to do something.”

The increase comes as part of a mandate from the Kentucky Infrastructure Authority (KIA), who will loan the city a large part of the $1.835 million it needs to fund a water rehabilitation project.

“We’re getting a $950,000 Community Development block grant that will not have to be paid back,” said city attorney Dorin Luck. Then there is a construction loan from KIA of $885,000, $88,000 of which we wont have to pay back. $797,000 of that will be paid back in no longer than 30 years.”

The KIA loan comes with the stipulation that KIA can tell the city what it needs to do with it’s water rates. In this case it says that the city needs a 17% increase.

The city is also working to get $750,000 in coal severance money to pay the debt, but that money will come later. For the time being they must rely on the KIA loan.

NEW RATES

In town:

For first 2,000 gallons

5/8, 3/4 and 1’’ meters  ~ $21.35

1 1/2 and 1’’ meters ~ $22.52

Larger than 2’’ meters ~ $23.69

Out of town:

For first 2,000 gallons

5/8, 3/4 and 1’’ meters  ~ $23.69

1 1/2 and 1’’ meters ~ $24.86

Larger than 2’’ meters ~ $26.03

For anything above 2,000 gallons all customers will pay $7.04 per thousand gallon.

Currently, according to Luck, the city is paying for water that is leaking out underground. Not only is this water the city is paying for but not able to sell, in some cases the leaking water or the repairs to those leaks is causing damage to the streets, generating more cost to the city.

“Our water lines date back to 1936,” said city employee Emory Thomas. “The main reason we need to do this is because of lost water and damage to our streets. The lines are cast iron and full of debris. We’re having one or two leaks per week, and it costly to the city of Sebree.”

Thomas said that the city has lost up to three million gallons of water in a single month.

Council members voted 5-0 to approve the first reading. Councilman Mark Moser was not present.

In related business, Emory Thomas appealed to the council to remove the installation of radio read water meters from the project. Currently half of Sebree has already been updated to the new meters, which allow water meters to be read automatically from the city’s service meters.

The radio read meters are currently part of the water rehab project, but, according to Thomas, if the city removes them from that project, certified city employees can install the meters at a drastically reduced cost. He estimated savings to be around $32,000 if the job is handled in house.

The council approved the proposal 5-0.

Several council members reported that Sebree residents had requested that the city’s Christmas decorations be set up this year.

Mayor O’Nan said that the decorations would be set up this year, but they might not be at the city park. He cited several instances of vandalism, including all of the copper wire being stripped from the shelter at the park.