Rate Hike Proposed For Water And Sewer In WV
By David Howell
Editor
WATER VALLEY – A proposed increase for water and sewage rates in the City of Water Valley is under consideration by aldermen and will primarily affect high-usage industrial customers. Water and Sewer Department Manager David Floyd presented the rate changes during the Jan. 2 city board meeting.
Floyd explained the proposed increase would be minimal for most residential and industrial users but would increase the flow rate for water usage from 65 cents to one dollar per thousand gallons used each month in excess of three million gallons.
“We have a declining rate on industrial users which is hurting us pretty bad. Our poultry plant uses more water than the whole town does,” Floyd explained about water usage at Water Valley Poultry, Inc. Floyd said the poultry plant used an average of just under 14 million gallons per month at a monthly cost of $10,486.72.
Floyd also shared a breakdown of water and sewage for one month at the poultry plant, where the bill was approximately $13,000. He said the cost for chemicals for the sewage lagoon to treat the waste waster from the plant was around $6,000 to $9,000, plus the cost for electricity to pump the water is around $1,500 per month.
“We are spinning our wheels,” Floyd added.
“Valley Tool and BorgWarner would stay about the same, but the one using the majority of the water would pay for it,” Floyd said, referring to Water Valley Poultry. He also estimated the rate increase would cost the plant $60,000 to $65,000 more per year.
Citing a comparison, Floyd said that the City of Grenada’s water rate for all customers is $5.36 per thousand gallons after the first 2,000 gallons used per month, over five times what Water Valley charges.
Feedback From Aldermen
Pointing to a mandatory water training attended last year by the town’s three new aldermen – Kagan Coughlin, Cinnamon Foster and Nicole Folson – Coughlin said they learned the cost to provide water doesn’t just include the price to pump it out of the ground but also includes long-term infrastructure costs.
“We just approved $250,000 to paint our water tank,” Coughlin also noted about one expense, adding that the water department has to pay for itself.
Foster also said that the city could get a rate study on the water usage in the city.
“Yes, we had a free rate study, this is what we came up with,” Floyd explained about the proposal that came from a rate study conducted by Mississippi State University.
“If our chicken plant wanted to look around and say they are paying way to much for water in Water Valley, under the proposed rates how does that compare if they picked up and moved to Grenada or Batesville?” Coughlin said.
“They would be paying out the wazoo in Grenada for their water,” Floyd answered, reiterating that the neighboring city doesn’t utilize a reduced rate structure for high consumption.
“What I have heard for a decade is we don’t want to charge some business accounts in town too much for water because it might drive them out,” Coughlin added. “But there is nowhere in Mississippi our businesses could relocate and pay a lower rate for water. So the question is, if we are not charging enough to pay for our own infrastructure, what is that rate?” Coughlin continued.
“Are you telling us we are actually losing money on supplying water to this particular industry?” Foster also asked.
“Pretty close, we are probably breaking even,” Floyd answered.
“I hate to be the one to say it, but is $1.00 per thousand competitive and does it pay our ongoing bills?” Coughlin asked, referring to the proposed increase not being enough.
“It will help,” Floyd said.
Aldermen indicated they would like to continue to review the proposal before taking action.
Coughlin also recommended that someone from the city meet with officials at Water Valley Poultry to discussed the proposed increase.
“I will be glad to,” Mayor Pro Temp Donald Gray said, volunteering to meet with the company.
Other increases
Floyd said the average residential customer in Water Valley uses around 4,500 gallons per month and the average monthly bill is $15.28. The proposal would increase the bill 37 cents a month for water and 60 cents for sewage.
Floyd estimated the annual cost of water the city sells to rural water association customers would increase around $1,400 per year under the proposed rate change.
We raised theirs not to long ago,” Floyd added.
