Jones County Commissioners listened to the results of a water and sewer rate study to consider how to keep the enterprise fund sustainable and affordable for customers.
Board Chairman Chris Weidner called the June 7 work session to order.
The presentation was a water and sewer cost analysis given by Bobby Sills with Nelsnick Enterprises located in Athens. Sills said Jones County’s rates were mid-range compared to surrounding counties. The issue appeared to be keeping up with debt service in the years to come.
“The debt is pushing the need for a rate increase,” Sills said
The current rate schedule for Jones County water customers has a $18.61 minimum bill for a single dwelling and a unit price for water at $3.76 per 1,000 gallons over the 2,000 gallon per month minimum.
Capital improvement projects that include expansion of water lines, a new elevated tank, new well and water treatment plant are elements of the analysis. Sills said recommendations from the study suggest an increase in both the base and unit charges for water and wastewater as well as increases for connection charges.
Commissioner Sam Kitchens said the standout in the analysis are the areas not covering cost.
“We’ve touted that we have not raised rates in five years. Now we have to raise them because we are losing money,” he said. “The cost of doing business is high.”
Kitchens said he understands it is not a good time to be raise rates, but there appears to be no choice. He said the model of rate increases goes out to 2028, but things can always change.
“I would like to see it projected out two to three years and then reassess. It’s a volatile time, but I know we need an increase,” he said.
The commissioner said his hope is prices will stabilize and the increases would not have to continue.
Weidner said he liked the idea of looking at the increase for three years and then reassessing, and Commissioner John Wood said he understood that changes were definitely needed.
Kitchens questioned if the increase should be a percentage as suggested in the study or a dollar amount. He said a dollar amount was more easily understood.
“We are going to have to set it to what we have to have to continue business. This is an enterprise fund that shouldn’t be supplemented by the General Fund,” he said.
Sills agreed using a dollar amount could be helpful. He said it was also important that people know they have a reliable source of water.
Kitchens said they needed to look at the connection fees, too. The fees had been pointed out to be less than what they cost the county to complete.
“We can’t continue to lose money. We have to find out what it costs to put the connections in,” he said.
Sills said the connections could fluctuate up and down depending on the cost of materials and labor.
Water Superintendent Brandon Stark said a quick estimate of the cost for a water connection was $2,000.
Commissioner Daylon Martin said he agreed with the holistic approach, looking at the overall situation. He also suggested considering fire safety in the analysis.
Commissioners agreed by consensus that more work needed to be done before the rate increases are brought to a board meeting for a vote.
