Water rates still under review
Demorest City Council is expected to vote tomorrow on whether to raise the city’s tap fees and sewer rates. A possible hike in city water rates is still under review.
At the work sesson in Demorest on Tuesday May 26th, Council members discussed raising rates. Under the current budget, rates were expected to rise in February as Council member Jerry Harkness reminded the members. Now in May, the discussion has resurfaced. Demorest currently supplies water to approximately 65% of Habersham County. Sewer services are provided primarily within the city limits. Two items are prompting the changes, one is a requirement from the USDA and the other is a study done by Ben Turnipseed in 2014.
The USDA is an important source of “Rural Utilities Services” loan programs at very favorable rates. The City of Demorest utilized the service to garner funds to make upgrades to the sewer system and to replace a pump station among other projects. One of the requirements of the program is that the fees that the utility provider charges must cover the cost of the services. At the time of the letter, May 2011, Demorest was required to raise their sewer rates.
Ben Turnipseed the engineer that has done a great deal of work for the City, completed a study on the water costs versus the current rate structure. According to that study, Demorest needs to raise their rates. At the work session Tuesday, the Council agreed to only move forward on the sewer rates and the water tap fees. They requested a little more data, specifically a comparision of surrounding community rates and a clarification from Turnipseed on a few numbers. Mayor Rick Austin queried Joely Mixon, acting City Treasurer, about the numbers provided in Turnipseed’s report. “I feel very confident of the study,” said Mixon. Bryan Popham, Public Works Director, “what he has proposed is fair,” referring to Turnipseed’s proposal.
While the water rates are still under review, the tap fees will be on Tuesday, June 2nd’s agenda. “We have always been the cheapest anywhere,” noted Council member John Popham. Indeed, Demorest’s tap rate is $800 and surrounding areas range from a low of $1200 to a high of $3200. At the current rate, Demorest is losing money, “especially along 441, where we have to make cuts in the highway and more,” reported Bryan Popham. While the Council is expected to raise the tap fee on Tuesday, a specific number has not been provided.
Current Sewer Rates
Residential Sewer Rates
0-2000gal 2000-5000gal 5000-10,000gal greater than 10,000gal
Inside City limits 20.00 4.00 per 1000gal 5.00 per 1000gal 6.00 per 1000gal
Outside City Limits 27.00 4.50 per 1000gal 5.25 per 1000gal 7.00 per 1000gal
Commercial Sewer Rates
0-2000gal 2000-5000gal 5000-10,000gal greater than 10,000gal
Inside City limits 75.00 5.00 per 1000gal 6.00 per 1000gal 7.00 per 1000gal
Outside City limits 100.00 5.00 per 1000gal 6.00 per 1000gal 8.00 per 1000gal
Proposed Sewer Rates
Residential Sewer Rates
Flat rate 0-2,000gal 2,001-10,000gal greater than 10,001gal
Inside City Limits 24.00 4.50 per 1000gal 5.00 per 1000gal 7.50 per 1000gal
Outside City limits Not provided
Commercial Sewer Rates
Flat rate 0-2,000gal 2001-10,000gal greater than 10,001gal
Inside City limits 100.00 5.00 per 1000gal 6.00 per 1000gal 7.50 per 1000gal
Outside City Limits 200.00 5.00 per 1000gal 6.00 per 1000gal 8.00 per 1000gal
Demorest’s City Council meeting is Tuesday, June 2nd at 7:00pm in the Council room under the fire department
