China Grove mulls sewer, water rate increase

By Shavonne Potts

spotts@salisburypost.com

CHINA GROVE — The board spent three hours poring over the sewer/water budget Tuesday during the second in a series of budget sessions.

The sewer/water budget is not balanced, but stands at more than $1.9 million combined.

"This is one thing that affects us the most — water and sewer," said Mayor Don Bringle.

At present, there is a shortfall of about $117,000 from the water/sewer budget.

It's hard to predict revenue because the town staff can only estimate usage, Town Manager Bill Pless said.

"Usage is tough to estimate. Historically industrial users could subsidize smaller, residential customers," Pless said.

China Grove does not have a big industrial population and most of their water/sewer customers are residential.

"We are 95 percent a residential system," Pless said.

There are some challenges, he told the board.

"Water usage is down. Sewer use that is billable is down, but sewer used billed to us is up," Pless said.

China Grove receives water from Salisbury-Rowan Utilities. At the time the town entered into a contract with Salisbury it used more water than it does now, but they are still billed for the old amount.

The town is in talks with Salisbury about a possible merger that would help reduce its rates or to renegotiate the contract terms. The contract ends in seven years.

Pless created a proposed scale that would show the board how much potential revenue the town could garner from a rise in water and sewer rates, if they chose to increase.

If the town went up 50 cents on the water rate it could generate an estimated $48,000 and a 50 cents hike in sewer fees could generate an estimated $40,300. But if the town increased the water and sewer rates by $1 it could bring in an annual estimated $96,000 and $80,600, respectively.

The current rate for water is $8 per 1,000 gallons and $9.50 per 1,000 gallons for sewer. Last year's sewer rate went up from $9 to $9.50, while the water rate remained the same.

"To close the gap we have to be up $2," Pless said.

He suggested a $2 increase on the debt service fee, which would bring in about $96,000.

"Everytime we raise the rates, the consumption decreases," councilman Lee Withers said.

Pless said in years past the increase has scared people into not using as much water.

"You will never convince people outside this room that if they use more water we don't have to pay more next year," said councilman Ron Overcash.

The board did not make any final decisions on whether to increase rates, but instead instructed Pless and the staff to come back with some concrete figures and scenarios of rate increases.The board will meet for another budget session at 6 p.m. Tuesday and have a public hearing June 16. The board will meet for its regular meeting at 6 p.m. — an hour earlier than usual — on June 1.