Fort Oglethorpe water and sewer rates to increase in January
by Heather Gentry
Nov 10, 2009 | 798 views | 0 0 comments | 6 6 recommendations | email to a friend | print
Effective Jan. 1, Fort Oglethorpe’s water and sewer rates will increase for the first time since 2000.

The City Council voted Monday night to increase the rates.

The increase will meet insurance requirements for the $11 million bond the council approved in the summer. The bond money is being used to fund city projects, like the third phase of the West Chickamauga Interceptor sewerage project.

City manager Ron Goulart said the council has traditionally kept the rates for the residents the same in spite of any increases in the rates charged to the city from companies involved in water and sewer, like Tennessee American Water.

“In order to get the insurance to insure this $11 million bond, you must demonstrate that your system can provide sufficient revenues to pay for that bond,” he said.

The increase will also pay for a bond taken out in 1998. The contract for this bond requires that the service rates cover the cost of the payments left.

Goulart said the councils have been using SPLOST money to pay for what could have been paid for with a rate increase.

“It’s critical that we do this,” Goulart said at Monday’s City Council meeting during the discussion about the resolution raising the water and sewer rates.

Goulart asked the council to add a provision to the resolution that would require councils to evaluate the water and sewer rates as compared to these bond requirements at least annually.

Council members Louis Hamm, Steve Brandon and Johnnie Smith agreed that this provision was necessary to keep from having a large increase from occurring again.

At council member Harold Silcox’s request, the motion was amended to have the increase begin in January instead of Nov. 1.

“We’ve hit the citizens with enough this year,” he said.

The city manager presented two possible resolutions to the council. The first was the one they voted for with the water and sewer rates increasing. The second was for only the water rates to increase.

Goulart recommended the first resolution, which the council approved.

Water rates

Current residential rate for first 2,000 gallons: $9.27

Current residential rate for each additional 1,000 gallons: $2.38

New residential rate for first 2,000 gallons: $11.17

New residential rate for each additional 1,000 gallons: $2.87

Current commercial rate for first 2,000 gallons: $12.27

Current commercial rate for each additional 1,000 gallons: $4.70

New commercial rate for first 2,000 gallons: $14.78

New commercial rate for each additional 1,000 gallons: $5.66

In city sewer rates

Current residential rate for first 2,000 gallons: $10.47

Current residential rate for each additional 1,000 gallons: $2.69

New residential rate for first 2,000 gallons: $12.09

New residential rate for each additional 1,000 gallons: $3.11

Current commercial rate for first 2,000 gallons: $13.47

Current commercial rate for each additional 1,000 gallons: $5.23

New commercial rate for first 2,000 gallons: $15.56

New commercial rate for each additional 1,000 gallons: $6.04
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