CullmanTimes.com - Cullman, Alabama

February 10, 2010

Good Hope sewer rates could be going up

By Benjamin Bullard
The Cullman Times

GOOD HOPE — Good Hope residents may soon be seeing an increase in their sewer bills if the city council approves an across-the-board rate increase discussed at Monday’s monthly council meeting.

The increase will come up again at the city’s March council meeting, giving  city officials time to review a draft of a new ordinance delineating a new rate structure.

Grady Parsons of Southwest Water said the city is overdue for an increase in fees and rates, having last adjusted its rates in 1992. Since that time, modifications to the city’s water treatment plant, coupled with an increase in population and new businesses, have outpaced rates compared with those of other Alabama cities.

“We’ve had a good bit of growth between 1994 and 2006, and that growth has provided our income based on user fees,” said Parsons. “within the last two or three years, you haven’t had an increase in your revenues, but your costs have gone up. Your (treatment) facility is over 25 years old and it will cost you more in the future. An increase isn’t very popular but the price of providing sewer service hasn’t gone down.”

The range of rate increase discussed at the meeting amounts to an average of $4 per month for the average home and $18 per month for the average commercial customer, said Parsons. He added that current rates, which average around $8.75 per month for residential customers, are far lower than nearly any other Alabama municipality.

“In Cullman, the average rates are around $55 a month; fast food restaurants average around $419,” he said. “Residential rates at West Point are about $43.75. The $8.75 average that Good Hope residents pay is the lowest I know of in the state of Alabama.”

Currently, Good Hope subsidizes the operation of its treatment plant with money out of the city’s general fund. If the suggested rate increase passes, the additional revenues will still not make sewer service a cost-recovery operation, said mayor Corey Harbison - it will only free up more general fund money that is currently going toward upkeep of the treatment facility.

“We’re transferring $200,000 a year from the general fund to the treatment plant,” said Harbison. “An increase isn’t going to put us into a position to break even, but it will reduce the amount that comes out of our general fund — the money that’s already being used to maintain the sewer system.”

The council also discussed raising sewer tie-on fees fees from $1,000 to $1,500 per house.

“Even with these increases, though, you’re still the lowest across the board in Cullman county where sewer rates are concerned,” Parsons told the council.

All changes will be detailed in the ordinance the council considers next month.

In other business, the council:

‰ Passed a resolution authorizing city attorney Rita Nicholas to write a letter to Cullman mayor Max Townson inquiring about Cullman’s disposition concerning repairs promised to Mize Road in Good Hope.

Agreed to become a member of the North Central Alabama Regional Council of Governments (NARCOG), with membership dues of $.35 per resident to be prorated beginning from the first day of the city’s membership. Wayne Willingham, who serves as NARCOG’s second vice chairman, explained privileges of membership to the council and encouraged their participation.

“It’s a funding mechanism that can help you access grants for your town,” said Willingham. “Much of the grant funding for senior citizens’ activity comes through NARCOG. If Good Hope joins, the mayor will have a seat at the table and have a say. It gives you another opportunity to be involved in some decision making and determining where some grant money goes.”

‰ Tabled a motion to address road repairs at Deer Run subdivision. The council will consider adopting a now-private residential street area at the subdivision into the city after further inquiry into the extent of the city’s responsibilities in maintaining not only the roads but related infrastructure currently owned by a private contractor associated with the subdivision.

‰ Approved a $12,010 bid to purchase a new John Deere tractor from TriGreen Equipment.

‰ Passed a resolution to rezone five acres owned by Don James from residential to agricultural use.



Benjamin Bullard can be reached by e-mail at bbullard@cullmantimes.com or by telephone at 734-2131 ext. 270.