SUD: Proposed Rate Increase; Commissioner Election
by Leslie Lytle, Messenger Staff Writer
At the Oct. 18 meeting of the Sewanee Utility District Board of Commissioners, SUD manager Ben Beavers previewed a draft budget for 2023 calling for a 5 percent rate increase in order to pay employees a fair wage and cover the rising cost of fuel, electricity, and chemicals. The board discussed the upcoming election of a Marion County commissioner and approved a request to extend water service on Deepwoods Road, provided the prospective customers agreed to install a 6-inch service line.
Beavers’ draft budget included an 8.7 percent increase for employee wages to match the Social Security Administration’s increase to seniors. In addition to employee raises, rising chemical and electricity costs “will drive the budget” for next year, Beavers said. Chemicals and supplies for the water plant increased 12 percent last month, and TVA has raised the wholesale rate for electricity. On materials, Beavers expects 10-14 percent cost increase. “The killer is anything made out of metal,” he insisted.
A 5 percent rate increase on water and sewer charges would increase customers’ monthly bills in the range of $1.50-$4.
The board is considering charging a monthly fee to the 197 grinder pump customers. Grinder pumps cost $1,600-$1,800 and last eight to 10 years. “[Implementing a fee] would make grinder pump replacement more sustainable,” Beavers said. A $10 per month grinder pump fee could offset the necessary rate increase by as much as 1.5 percent. However, Commissioner Donnie McBee pointed out a $10 per month fee would only generate $1,200 in 10 years, not enough to cover grinder pump replacement.
Beavers will factor the various scenarios into the budget and present the data for the board’s review at the Nov. 15 meeting.
Marion County SUD Commissioner Ronnie Hoosier is term limited and cannot pursue reelection. The board is seeking candidates for the December election. Prospective candidates must be Marion County residents and SUD customers. (The board consists of four Franklin County commissioners and one Marion County commissioner.) SUD commissioners serve a four-year term, are expected to attend monthly meetings and to participate in commissioner training. Commissioners receive a $50 monthly stipend.
Prospective customers on Deepwoods Road requested SUD extend water service to two lots which may be divided into four lots. In keeping with SUD policy, the customers agreed to assume all installation and infrastructure costs. Rather than extending the service with a 2-inch or 4-inch line, the board decided the extended service must be done with a 6-inch line to accommodate a fire hydrant. Commissioner Doug Cameron stressed the importance of a hydrant not only for fire protection, but to allow for line flushing to prevent disinfectant byproducts from accumulating in the line. Cameron also noted, distance from a hydrant was factored into calculating fire insurance premiums. “We should go with a 6-inch line, regardless,” said Board President Charlie Smith. “There is still a lot of interest in getting water out there.” McBee concurred, “Do it right the first time.”
The board approved a resolution acknowledging SUD’s financial responsibility to pay a 15 percent match ($250,500) for American Recovery Plan grant funding. Beavers commented, the expected reimbursement from the University for the Highway 41A project would come close to offsetting the matching funds requirement.