Jay votes to raise water, sewer rates

In a special meeting June 30, the Jay Town Council approved an increase of 6 percent on water and sewer base use for residential and commercial customers inside and outside Jay town limits, rounding to the nearest 5 or 0.

For example, residents inside the town limits who pay the base rate for water and sewer (totals do not include garbage) currently pay $20.25 for water and $21.21 for sewer. The new rates would be $21.50 for water and $22.50 for sewer. Residents outside town limits currently pay $25.25 for water and $26.50 for sewer. Rates for outside town limits will increase to $26.50 for water and $27.50 for sewer.

Commercial rates inside town limits are currently $41.00 for water and $43.00 for sewer. The increase would be $43.50 for water and $45.50 for sewer. Commercial rates outside the town limits are $51.25 for water and $53.75 for sewer. The increase would make commercial use outside the town limits $54.50 for water and $56.50 for sewer. Residents are allowed up to 2,000 gallons per month water and commercial is allowed up to 4,000 gallons per month water as base usage.

Suggestions of different percentage increases were looked at, using current numbers and the revenue they would generate. The water and wastewater fees will be updated within the town’s billing system for the billing cycle that starts Nov. 1, 2022.

Councilwoman Jane Hayes put together a sheet reflecting percentage increases at 2, 4, 6 8, 10 and 12 percent to give council members an idea of what revenue would be generated.

There was discussion whether increasing the base rate or over use rate would be prudent and Mayor Mayor Owens said he was in favor of raising the base rate.

Jay’s water rates were compared to nearby municipalities. Town employee April Watson said she reached out to Moore Creek, Milton, Point Baker, Pace, East Brewton to find out what their water rates were just to get a comparison and presented it. Watson said she reached out to Century to find out its water rates but did not hear back. Residential customers in Flomaton pay a base rate of $42.40 per month for water and sewer service.

“We are significantly higher in almost every area,” said Watson. She pointed out sewer and water per 1,000 gallons are lower or higher, citing that Jay probably is closer to Point Baker.

Watson said she wanted the council members to see the comparison, and pointed out that she was more concerned about increasing the per 1,000 gallons more than the base rate.

She calculated what each proposal would have brought using June’s recent billing. One calculation that increased the water base by $2.50 would bring about $24,000 per year.

There was discussion about summer rates for people who have pools and residents who are on water service but do not use sewer, but septic instead. Mayor Owens expressed concern about how to grow the town in the future, especially with the new park, and how to address the water infrastructure to support that growth.

Watson said raising the base rate by a small amount would effect every resident who gets water and sewer service, whereas increasing the over use per gallon amount would effect significantly fewer.

Watson said the City of Milton offers 3,000 gallons of water base rate, but all other municipalities offer 2,000, the same as Jay. Watson said Jay’s over base rate is higher on the cost per thousand gallons than many other municipalities.

The council agreed they would look at a tier system for water and sewer rates in 12 months.

Councilwoman Hayes made a motion to approve the 6 percent increase on water and sewer base rate, rounding to the nearest 0 or 5. The motion was seconded by Mayor Owens. The motion carried unanimously.

The next council meeting will be at 6 p.m., Monday, July 18, at Jay town hall.