New rates will boost revenue for the town
The Century Town Council approved a new water, sewer and natural gas with contract with the Florida Department of Corrections' (FDOT) Century Correctional Institute (CCI) and the town of Century at a special meeting Nov. 30 that will increase the town's revenue as much as $180,000 annually.
The town is owed a total of about $332,000 under the 2008 contract with CCI for past under billing due to faulty gas meters and other problems, although the statute of limitations would make it difficult for the town to recoup those monies. The CCI is the town's largest customer of natural gas.
The new contract will stand for five years with a three-year option to renew. The town will see an annual income for water, sewer and gas of $615,000, eventually up to $750,000 with the Consumer Price Index (CPI) applied annually. The CPI would become effective retroactively from March 2021 which will bring the town $125,836 through October 2022.
The new prison rates will be: for water, $2.75 per 1,000 gallons with a 6,000 gallon minimum; for sewer, $4.45 for 1,000 gallons with a 6,000 gallon minimum and for natural gas, a $4,000 monthly base fee and 26.5 cents for each 100 cubic feet beyond that.
Interim City Manager Vernon Prather reminded council members that the current gas rate is $0 base and 19.5 cents per 100 cubic feet plus the cost of gas. All base and volume metric fees will be subject to CPI each March.
“Come year four, it's important that somebody, a council member, mayor, somebody, take a look at this contract,” said Prather. “We need to decide of we want to renegotiate, or renew or just to have that conversation at that time.”
Prather said that the CPI had not been applied in the past to the base amounts, which was one cause of the under billing. Prather said the new rates will provide the town with an additional $15,000 per month, for a $180,000 new annual revenue based on base fees and normal consumption of gas.
Currently the contract in place from 2008 is worth $434,000, the annual existing with a $181,000 rate increase so it will grow to $615,181 annually, $750,000 eventually, including the cost of gas.
The cost of natural gas in November was 72 cents per cubic feet, up from 33.9 cents in January.
Part of the agreement is that the town participate in a grant process that will install a screen in the waste water system that will eliminate a large majority of the debris collected. If that piece of equipment is installed, CCI will reimburse town $1,120 per month operating cost, also subject to the CPI. Prather explained that there are two ways to deal with waste, either grind it up or make a way to catch it, then put it in a dumpster.
“You can just imagine what comes out of a facility like that,” said Prather. “T-shirts, plastic, cell phones, towels, you name it, it comes through the water system.”
“This contract will take what is now $36,000 a year profit for the town up to $96,000 a year profit,” said Prather. “This agreement is the result of work of attorneys, engineers, this thing has to be actively managed.”
Century Mayor Ben Boutwell said the contract has been finalized and both parties have signed.
“It's at the state level now,” said Boutwell. “We have already submitted the back billing to FDOT with new rates. They will be making an additional nine month payment.”
Mayor Boutwell said this is big for Century and he sees the future is bright.
“This is huge for the town of Century,” said Boutwell. “We are going to be competitive now, the gas department will now float itself, it will be self-sustaining. They are our largest customer. It needed to be done. The state's happy, the DOC is happy and we are happy, so it's a win-win for everybody. Our goal is for all our departments to be self-sustaining.”
The next council meeting will be at 7 p.m., Monday, Dec. 20, at Century Town Hall.