With slumping growth continuing to hit Bedford County, the public service authority is proposing an increase in water and sewer rates to help keep operations afloat.
The authority — which provides water service to just more than 8,000 residents — is holding a public hearing June 16 on planned changes to usage fees.
It is advertising an increase in water rates from $4.50 per 1,000 gallons to $5. For sewer rates, it is advertising a switch from $5 per 1,000 gallons to $6.
Brian Key, the authority’s director, said the rates are basically needed to balance the upcoming budget that takes effect July 1.
“This increase is just to pay for routine operating expenses like employee salaries,” Key said.
The economy’s downturn led to a drop in new connections that were expected to come largely from residential growth, Key said.
The county made investments in anticipation of those new customers, particularly in a wastewater treatment plant that came on line in Moneta in 2007. But now, development has slowed.
“That’s the problem — we’re not growing but our expenses are going up,” he said. “This is definitely the highest rates we’ve ever seen and it’s attributed to low growth.”
Key said the rates can’t go up from those advertised but could be lowered if the authority’s seven-member governing board chooses to do so once a public hearing is held.
The Bedford County Board of Supervisors had to cut roughly $3 million to balance the budget for the upcoming fiscal year without raising taxes due to lagging growth. Some officials have said this year is the first in memory they have had to face less revenues heading into a new budget.
The authority has even greater challenges in funding needed capital projects, which Key said it can’t do at this time under current revenue streams. Last year he gave supervisors a potential list of major projects needed in the near future that totaled $13.1 million; the authority has since sought federal stimulus dollars for some of them.
The proposed rates would take effect July 1.
YOUR INPUT
- The public hearing on the rate changes is at 7 p.m. June 16 at 1723 Falling Creek Road. A description of the changes can be found at www.bcpsa.com/rates.
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