SUD Seeks Commissioner; Approves 1% Rate Increase

by Leslie Lytle, Messenger Staff Writer

At the Nov. 24 meeting, the Board of Commissioners of the Sewanee Utility District of Franklin and Marion Counties announced plans to seek nominations for a commissioner representing Franklin County to serve a three-year term beginning in February 2016. The board also passed the 2016 budget, which includes a 1 percent rate increase, discussed adopting a customer leak insurance program, and reviewed proposed revisions to the travel expense policy.

Candidates for the open commissioner’s seat must be SUD customers and must reside in Franklin County. Prospective nominees should contact the SUD office by phone (598-5611). The deadline for declaring candidacy is Dec. 15. Art Hanson currently holds the seat and will seek re-election.

The 2016 budget passed by the board allocated $233,000 to the capital improvement program (CIP), which includes the Midway pressure-boosting station, repair to the sewer lines, lift station rehabilitation, leak detection, the constructed wetlands research project and painting the water tank. The $1,483,000 budget reflects a $62,000 deficit compared to anticipated revenue for 2016, because projects not completed in 2015 like the Midway pressure-boosting station were moved to the next year. Unspent funds in the 2015 CIP totaling $100,000 will be used to cover the deficit.

The 2016 budget projects operating expenses and revenue comparable to 2015 figures. Health insurance costs decreased 4.8 percent for 2016, Beavers said. Last year the board approved a 2.5 percent rate increase. SUD’s consulting firm, Raftelis Financials, Inc., recommends consistent, incremental increases in rates for water and wastewater services over time to meet SUD’s annual increases in costs and to develop reserves for future capital needs. The 1 percent rate increase for 2016 will increase the average customer’s bill by less than $2 per month.

The board discussed adopting a customer leak insurance program that would cost customers an estimated $24 per year for protection from paying for water lost due to leaks between the meter and their residence. By the current adjustment policy, the customer is liable for half the cost of water lost due to leaks of this type. In 2015, the 12 customers with meter-to-residence leaks paid over $1,800 for lost water. If SUD adopts the program, customers will have the option of declining the insurance, but for customers without insurance, no adjustments will apply in the case of water leaks.

SUD Chair Karen Singer said, “SUD benefits very little from the program. The biggest bonus is to customers, especially in cases where the meter is a long way from the house, where leaks can go undetected.”

Commercial customers would not be eligible for the leak insurance program. Beavers will send for educational literature, which will be made available for customers to review.

Beavers presented a revised travel expense policy for the board’s consideration. The revised policy more clearly defines when SUD employees and commissioners qualify for travel reimbursement. The board asked Beavers to add a meal allowance for day travel and to define circumstances when an unanticipated overnight stay would be reimbursed. Beavers will make the changes and present the policy for a vote at the December meeting.

In December, the board will meet a week early, on Dec. 15.