MUD OK’s $2 sewer rate cut

Sewer Rate Drop

DUANE CROSS
MCO Publisher • Editor

On Tuesday, the Metro Utility Department approved a $2 rate reduction in sewer charges for its 315 Residential, Commercial, and Industrial customers, a change that will go into effect on July 1. The new rates will be:

  • Residential: $20.09 per 1,000 gallons
  • Commercial: $26.18 per 1,000 gallons
  • Industrial: $31.47 per 1,000 gallons

MUD board member Glen Thomas moved to reduce the rates, citing increased revenue and customer concerns over high rates as key reasons for the decision. Greg Guinn seconded the motion, and it carried unanimously with yes votes from Charles "Boo" Johnston, Barry Posluszny, and Darrell Richards.

According to utility officials, recent billing adjustments – particularly classifying more accounts as commercial – have significantly increased monthly revenue. The department reported bringing in $80,000 to $87,000 per month from sewer billing alone, compared to approximately $65,000 previously.

"By adding everyone to Commercial like it should have been before, revenue increased significantly,” Thomas said. “The Industrial category alone saw a $7,000 jump in one month."

Despite the $2 cut per 1,000 gallons, officials say the utility is still on track to meet its annual budget, which includes covering sewer system expenses and principal payments on related debt. The department estimates that total sewer revenue could approach $1 million if the current pace continues.

The sewer rate cut comes after ongoing complaints from residents about high monthly utility bills. “This sewer has been a sore spot for a lot of people in town,” Thomas noted. “It’s just too high.”

After the meeeting, board member Richards noted that Thomas's dogged efforts to address the sewer charges was to be commended. "He deserves all the credit," Richards said.

While the sewer rate is decreasing, officials briefly discussed a proposed water rate study in April 2024. However, no action was taken, and members agreed that more review and communication with the state would be needed before any changes are made to water rates.

Utility officials emphasized that the system is financially healthy and that the rate cut is both sustainable and responsive to public concerns.