by Leslie Lytle, Messenger Staff Writer
At the Dec. 16 meeting of the Board of Commissioners of the Sewanee Utility District of Franklin and Marion Counties, the board voted on a number of issues critical to the future of the utility, including authorizing a 2.5 percent rate increase.
At the November meeting, SUD manager Ben Beavers suggested SUD defer some capital improvements to avoid a 10 percent rate increase in 2015. Beavers submitted the revised budget to SUD’s consulting firm Raftelis Financial, Inc. Raftelis recommended SUD increase rates 2–3 percent in 2015 to accommodate the revised budget.
The board considered various scenarios, weighing SUD’s capital improvement goals against the funds needed to accomplish these. A modest 1 percent rate increase in 2015 would require a 2 percent increase in 2016 in order for SUD to break even. SUD board president Cliff Huffman expressed concern about deferring necessary capital improvements and stressed the importance of SUD’s revenue sustaining SUD’s expenses.
The board voted to approve a 2.5 percent rate increase for 2015. They project a 1 percent increase in each of the subsequent four years.
Top among SUD’s capital improvement goals is detecting causes of unaccounted-for water loss—the difference between water produced and water registered as passing through customer meters. Beavers said that 8 percent of SUD’s water production cost is for unaccounted-for water: 22 million gallons in 2014, 23 percent of the water SUD produced.
To more accurately track water sales, SUD recently switched to monthly irrigation-customer billing instead of quarterly billing. A software error resulted in some irrigation customers being billed for sewer service. Beavers said the customers will be notified and their bills adjusted.
Beavers updated the board on the contract licensing use of SUD property for the trial wetlands slated for construction at the SUD wastewater treatment plant in conjunction with a research project undertaken jointly by the University of the South and the University of Georgia.
The license gives the researchers the right to operate as if they owned the land, provided the use does not interfere with operation of the wastewater treatment plant. Because SUD receives federal funding, law forbids the utility from giving up property rights by granting an easement to the researchers. SUD’s attorney, Don Scholes, drafted the contract. Beavers provided project coordinators Deborah McGrath and Scott Torreano and University attorney Donna Pierce with a copy of the contract for review.
The board nominated Ronnie Hoosier to run for the office of SUD Marion County commissioner. Huffman’s term will expire in January; Huffman is term-limited and cannot seek re-election. The nominating process remains open until Jan. 13. Prospective candidates need to submit a nominating petition with the signatures of 10 SUD customers residing in Marion County. Petitions are available at the SUD office.
The board approved Beavers’ recommendation of the accounting firm Allen, McGee and Associates (AMA) to perform the 2015 audit. AMA received high marks from other utilities. The firm will save SUD $1,400 compared to the accounting firm SUD employed in 2014 and promised to complete the audit in two months. Last year SUD had to wait until September for a final draft.
The SUD board meets next on Jan. 27.
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