MUD board to keep tap fees steady
5:55 p.m. July 9, 2025
DUANE CROSS
MCO Publisher•Editor
Despite rising costs in meters and materials, the Metro Utility Department board voted unanimously Tuesday night to keep water tap fees unchanged, at least for now, opting instead to manage costs on a case-by-case basis.
Board members discussed in detail the current expenses associated with setting both three-quarter-inch and 1-inch meters. The cost of a standard three-quarter-inch meter, including labor and materials, is $1,550 – a narrow margin that has raised concerns among members.
Water Department staff broke down the costs in detail. They reported that the meter itself costs $479.91. With labor included, the total installation cost for a three-quarter-inch meter exceeds $539. The higher cost of one-inch meters sparked discussion about whether the added expense was justified for the average household.
Some board members questioned whether to include employee labor in cost estimates, noting that water and sewer revenues already cover staff salaries. Others insisted the utility must at least break even on materials and installation.
A proposed solution was to maintain the current $1,550 tap fee for standard three-quarter-inch meters but charge a separate, flat boring fee in cases where installation requires road boring or additional labor, such as longer lines or rugged terrain. This approach avoids penalizing every customer with a general fee hike, while recouping added costs from more complex installations.
The board clarified how they handle meter set costs. When a customer buys a tap but delays meter installation, the tap fee already includes the meter set cost, preventing double billing later.
The board also discussed occasional customer requests for one-inch meters, which cost more but don’t necessarily increase water pressure; they only increase volume. “It's all about the size of the pipe,” board member Greg Guinn said.
A motion to keep the current fees, including $1,550 for a three-quarter-inch tap, passed unanimously.
In other business, the board unanimously voted to contract with Ray & Gregory for accounting help. The firm will provide consistent monthly support at a rate of $800 per month, or $9,600 annually. The decision was driven by a need for regular guidance, particularly as the utility department transitions its billing and financial systems.
The board also discussed the upcoming Kamstrup smart meter installation, scheduled to begin in late August or early September. Office Manager Katie Goodwin noted that internal software configurations and training must be completed before implementation can proceed.
Officials raised concerns over customer- or county-caused damage to meter boxes. While a $150 fee already exists for damaged boxes, the board discussed the need to enforce this policy more consistently, especially with newer equipment being more expensive to replace.
The meeting closed with a brief financial update from board member Glen Thomas. The utility system finished FY 2024-25 with $124,000 more in revenue and $196,000 less in expenses than anticipated – a nearly $320,000 swing in the taxpayers’ favor.
The MUD board meeting is at 6 p.m. Aug. 12.
