City Expects Results of New Water Cost Study Soon

The City of Smithville is expected to receive a report soon from a North Carolina company which is doing another water cost study.
City officials want more up to date figures on how much it costs to produce water so they can determine whether another rate increase to the DeKalb Utility District is justified.
“I talked to the firm out of Charlotte, North Carolina who is doing our water rate study. I think they are about done. He’s got a verbal report but not a numerical report. I’ve been waiting for a couple of months so hopefully we’ll know here by the next meeting what they have assessed our water rates (to be). Then we can assess our situation,” said City Administrator Hunter Hendrixson during Monday night’s meeting of the Mayor and Board of Aldermen.
In January, 2014, the city increased the rate it charged the DUD to purchase water to $5.00 per thousand gallons. But DUD challenged the increase in Chancery Court and during a hearing a year ago in Cookeville, Chancellor Ronald Thurman ordered the city to reduce the water rate to the DeKalb Utility District from $5.00 to $2.67 per thousand gallons, which a 2013 water study found to be the city’s actual cost to produce water at that time.
Chancellor Thurman granted a DUD motion for a temporary injunction barring the city from continuing to impose its $5.00 rate until the city gives proper notice to DUD and justification for raising the rate above $2.67 per thousand gallons. The rate has remained in place since that ruling.
But according to Hendrixson, the DUD has made an adjustment in minimum usage to its own customers. “I’ve been asked if we have raised our water rates, which we have not (raised rates) to our city customers and not to DUD since about a year ago whenever the judge (made his ruling).
I think there has been some confusion. I don’t think they (DUD) have raised their water rates but they (DUD) lowered their minimum from 2,000 gallons to 1,500 gallons. It’s a rate adjustment without raising the rates,” he said.
Meanwhile, DUD is still pursuing plans to build its own water treatment plant and will apparently continue to purchase water from the City of Smithville until it can produce its own supply. “Concerning DUD, I have been asked several times in the last month or two where they’re at. I have no idea. I know they have not broken ground. They are still purchasing (water) from the City of Smithville and they probably will be for a while,” said Hendrixson.