The Duncan Banner

Local News

August 19, 2009

Water rates to increase

Toni Hopper

In an effort to pay down a debt, city leaders agreed to increase some water rates that haven’t been raised since 2002. That will be directed to the rural water districts, Stephens County RWD No. 5, and Jefferson County RWD No. 1.

“It is suppose to be adjusted annually based on the cost of production,” said City Manager Clyde Shaw on Monday.

The new rate will be $2.77 per 1,000 gallons water consumed, averaging revenue of $173,296.07.

The annual payment for a new water tower and water treatment plant is $508,217.

“We are going to use that additional revenue for that purpose,” Shaw said. “Even with this rate increase, this is going to be less per 1,000 gallons used then what the city customers use.”

Shaw said there are 10,449 customers in the city whose rates are adjusted annually.

During the Duncan Public Authority portion of the city council meeting a week ago, six options were presented for consideration and option four got the votes. Water revenue the city needs from its customers is $360,331.78. Under this option, a base increase of $1.50 per month for 10,449 customers, will provide the city with $188,982 in revenue. Current rate at per 1,000 gallons is $3.52, with the new rate increase at $3.69 for city customers, would allow for the balance needed on consumption increase.

Shaw said Monday that the adjustment for rural customers is 1 1/2 times the in-town rate, but still less than what city customers pay. That consumption increase option, which includes rural water, is $1,128,481,220, putting the adjusted increase to be $3.67.

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