Bude OKs water and sewer rates

The Bude Board of Aldermen voted Tuesday, March 15 to adopt an adjusted water and sewer rate schedule for the current fiscal year — with several warnings aired that the enacted fee structure might not be sufficient to help put those services in the black financially.

A near-capacity audience of Bude residents watched as the five-member board along with Mayor Linda Green, Town Clerk Kimberly A. Vaughn and Attorney Mary Kathryn Williamson spent the better part of 80 minutes dissecting the rates.

Near the end of the discussion, Ward 3 Alderman Jillian Dunmore questioned whether or not the rate policies adopted by board would address the town’s water and sewer financial needs.

Vaughn said, as a whole, she was less than optimistic the approved fees would be sufficient in dealing with long-term revenue demands for those municipal services.

“It’s quite possible we will have to come back and look at these numbers sooner rather than later,” Vaughn noted. “But this is a starting point, and something we had to get accomplished.”

Vaughn told aldermen three times during the meeting the fees might not be enough in light of concerns that have been raised in the past.

The need for action on water and sewer fees has been evident on the town’s balance sheets for the past couple of years, based on numbers provided by Bernell McGehee, a certified public accountant who reports on Bude’s financial status annually.

During fiscal year 2021, which ran from Oct. 1, 2020 through Sept. 30, 2021, McGehee reported the town generated $279,115 in water and sewer revenues, but had $326,687 in operational expenses — leading to a shortfall of $47,572.

In FY 2020, McGehee’s findings showed Bude had collected $257,170 in water and sewer revenues while spending $291,230, which led another shortfall of $34,060.

From an operational and financial practices standpoint, it is generally frowned upon for municipal water and sewer systems in Mississippi to operate in the red for any length of time — especially two years.

Part of the effort by the town to address water revenues in the past year has involved the installation of digital water meters to obtain more accurate counts of potable water sold to each customer on a monthly basis.

Another concern has been on the cost of sewer handling services and a need for more revenue from this side of Bude’s utility offerings.

During last week’s special called session, the Bude Board of Aldermen adopted the following rates for water and sewer services:

• A $1 monthly fee for each customer to fund maintenance of the town’s elevated water tank.

• A $1.50 monthly fee for each customer to fund fire hydrant repairs and upkeep in the municipality.

• The minimum monthly residential water rate has now been set at $28 for the first 2,000 gallons of usage and $3.75 for each 1,000 gallons consumed beyond the minimum.

• Commercial water rates for small businesses were set at $50 for the first 2,000 gallons and $4 for each 1,000 gallons used over and above the minimum.

Large businesses will be charged $250 for the first 2,000 gallons of water usage and $7.50 for every 1,000 gallons past the minimum.

• Water deposits were also set at $100 for home owners, rental houses and mobile homes.

An additional $25 non-refundable water fee will be charged for those in rental house and mobile homes.

Small commercial water deposits were established at $150 and large commercial water deposits will now be $250.

• Water tap fees were set based on the size of connections — $350 for 3/4 inch; $650 for full one-inch; $1,200 for full two-inch; and $1,500 for full six-inch.

• Bulk water purchases from the town were established at $50 for the first 1,000 gallons used and $25 for every 1,000 gallons afterwards.

• The minimum monthly sewer fees will now be $12 for the first 2,000 gallons utilized and $3.75 for each 1,000 gallons thereafter.

Sewage volumes are traditionally calculated based on a location’s monthly measured water usage — often referred to a GIGO (gallon in-gallon out).

• The town’s sewer tap fee was set at $300.

• Reconnection fees and charges for returned checks were set at $50 each and a late fee of $5 will be assessed to customers who fail to pay their statements prior to the monthly deadline.

• For apartment complexes served by Bude’s water system, aldermen set fees by using the minimum flat consumption rate times the number of units in the development.

• Water customers beyond Bude’s corporate limits will be charged twice the established municipal rates.

The fees, as adopted for the current fiscal year that runs through the end of September, will take effect on Sunday, May 1 after being published in The Franklin Advocate, according to Vaughn.