(From the City of Fayette's Community Announcement E-mail, 8/14/19)

FAYETTE WATER & SEWER RATES:  As I mentioned in a previous email, the majority of the council have finished taking the necessary steps to update the monthly water and sewer rates as well as adjust the water/sewer capital improvement fee.  There were no changes to Recycling, Landfill, Yard Waste and Storm Water fees. The new changes are below:

We have quite a few residents that receive a minimum utility bill.  Here are the changes you will see:

These changes will be reflected on your next utility bill that you will receive the beginning of September.

Why the changes?

The council reviewed the revenue for the water and sewer accounts after switching to monthly billing and found the monthly rates were too low.  The majority of the residents were paying less for their water and sewer than when the city was billing quarterly.  The council added a $10/month fee for future water and sewer capital improvements and that is the reason why residents saw an increase in their utility bills when we switched to monthly billing.

The majority of the council decided to replace the water and sewer capital improvements fee from a flat $10 per month, per account, to charging each account a fee of 2% of the water usage.  There would be a minimum fee of $3 per month and a maximum fee of $100 per month, per account.  The majority of the council felt this may be a fairer way to charge people because it will mostly be based off of water usage.  A few examples of what this would look like is:

• If a utility user used 150 cubic feet of water or less in 1 month, they would be charged the minimum fee of $3 for that month. 
• If a utility user used 250 cubic feet of water in 1 month, they would be charged a 2% fee of $5 for that month. 
• If a utility user used 500 cubic feet of water in 1 month, they would be charged a 2% fee of $10 for that month. 
• If a utility user used 1,000 cubic feet of water in 1 month, they would be charged a 2% fee of $20 for that month.
• If a utility user used 5,000 cubic feet of water or more in 1 month, they would be charged the maximum fee of $100 for that month.

Many cities in our area have been charging some sort of a capital infrastructure/improvement fee on their utility bills so they can pay back some sort of water or sewer debt.  The City of Fayette currently has debt for our sewer system but has never implemented a capital fee because we’ve been fortunate enough to be able to pay back the debt with our current sewer rates.  The council felt it would be a great time to start charging a capital fee when we switched to monthly billing so we can start a fund for future water and sewer improvements.  The idea is to help build up a fund in hopes to avoid the city having to drastically increase rates or fees when a major water or sewer repair or improvement is needed.  We have witnessed neighboring communities have to do this and we are trying to avoid it from happening here in Fayette.  The council is looking out and preparing for the future of Fayette.  

I know I’ve mentioned this a few times, but I’ll say it again.  It is a tough job to have to manage the city’s water and sewer, such as making sure we are bringing in enough money to be able to pay all the expenses for providing water and sewer service to our community while saving for future necessities and repairing old infrastructure.  Raising rates and fees is not easy and affects all of us.  The price of everything continues to rise, including the chemicals, the testing and all the other expenses the city must provide to be able to offer you clean water and a sanitary sewer service.  If you have any questions, please reach out to the Mayor, a council member or me.

-Kris McGrane, City Administrator/Clerk

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