Village of DeSoto Water Committee met September 21.
Here is the minutes provided by the Committee:
The Water Committee met September 21, 2017 at 4:00 pm. The purpose of the meeting was to discuss water rate increases and the possibility of paying off the loan for Phase I of the Watermain Replacement Project. Chairman Heath Rushing convened the meeting at 4:00 pm.
Present:
John Evans, Village President
Heath Rushing, Chair
Tony Rushing, Trustee
Due to the fact that Kinkaid Reid’s Creek Conservancy District raised the Village’s water rate by $.30 per 1,000 gallons of water effective August 1, 2017, and the upcoming payments on the loan for Phase II of the Watermain Replacement Project, the committee reviewed calculations to determine how much the water rates should increase. The committee will recommend raising the water rates as follows:
Water Rates Inside the Village
First 2,000 gallons per month (minimum charge) $13.10
Per 1,000 gallons after minimum $ 6.00
Water Rates Outside the Village
First 2,000 gallons per month (minimum charge) $16.60
Per 1,000 gallons after minimum $ 6.50
Water – New Rural Rate
First 2,000 gallons per month (minimum charge) $26.60
Per 1,000 gallons after minimum $ 6.50
Bulk Sales
Per 1,000 gallons $4.00
Village Clerk Paula Parks calculated the increases should net additional revenue of approximately $23,590 per year to cover the cost of the Kinkaid’s rate increase and the Phase II payment.
Trustee Heath Rushing expressed concern about the loss of water each month. He wants to try to find out why there is an average of 400,000 gallons of water lost each month. His first step is to have a separate meter for the Village Hall, the Fire Department and the Bulk Filling station.
The committee then discussed the possibility of paying off the loan for Phase I of the Watermain Replacement Project early. When contacted, Amanda Tinsley of J. T. Blankinship had stated that there would be no penalty for paying the loan off early, and it would not affect the debt forgiveness. The loan payoff balance would be approximately $311,828.89. At the end of August 2017, the balance of the Waterworks savings account was $423,348.71, and the Waterworks checking account balance was $151,365.74.
Committee members decided to look into paying off the loan fully or only half of the loan. They didn’t want to bring their savings balance too low because of Phase II just starting. They will ask Treasurer Dana Smith what she thinks.
Village Clerk Paula Parks will send the proposed water rates to Attorney Pat Hoke so she can prepare the ordinance amending Section 38-4-11 of the Revised Code of Ordinances.
The meeting ended at 4:50 pm.
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