City officials in Newton discussed a need for water and sewage rates to be increased after raw numbers shared at the Nov. 19 board meeting showed that the city’s water funds had a significant deficit last year.
Deputy Clerk Demarius Evans shared with the board that, after an initial meeting with the Mississippi State University Extension Office about water and sewage rates, the recommendation was for water and sewage rates to increase every 3-4 years to stay afloat. With the last water rate increase in Newton occurring in 2021, Evans said a rate increase was due.
To prove his point, he then shared the city’s water and sewage raw numbers for the past year.
“For physical year 2023-24, in revenue we have $984,291.22, and for expenditures we have $1,073,674.94,” Evans said. “That gives you a total deficient of $89,383.72.”
“So that’s [how much] we’re behind for one year,” asked Alderman Bob Bridges. Evans confirmed that, yes, it was.
After Alderman Eric McCalphia said the public needed to hear this so they’d understand, Public Works director Gary Turner said that when they went to a recent conference, a Mississippi State official said that he’d be available to come and take part in a citizen forum to discuss water rates.
“Then they would understand, even though ‘I may not agree, I can understand why we need these rate increases’,” said McCalphia. “A lot of people feel like we’re just jacking up water for no reason, but when they see that we’re really not, sometimes people just need to know.”
After being asked when the official could come, Evans said that he will have another meeting with him on Thursday, so they may have an idea afterwards.
Alderman Michael Hillie that people should understand that you can’t operate business by using prices from ten years ago because prices rise every year.
The current rate for water usage in Newton is $15 for consumption of up to 2,000 gallons.
Evans said that the way water charges are supposed to work is the more water you use, the more you’re charged for the water. However, the city’s procedure is that you start out at a flat rate, and the more water that is used, the customer is charged less. Which means residents using less water are charged the same amount as those using more.
Evens went on to say that the reason he’s bring the matter up is that the General Fund owes money to the Water Fund, so at some point in the year the city will get an influx of money to put back into water and making up the difference.
“But, it’s going to get to the point that the expenditures and the cost of running the system is going to outweigh what we pay back,” said Evans.
Evans added that if the city went to from a base rate for water customers to charging per usage, those who use less that 2,000 gallons would not only save money, but customers may also be inclined to use less water and put less strain on the water system. In turn, this would mean less repairs needed to the system.
Mayor Antonio Hoye asked that, looking at where the city is at now versus where the city is supposed to be, do they know what that rate would be.
Evans said that they would find out during the meeting Thursday with the official from the Mississippi State Extension Office, adding that he initially suggested to bump up the rate to get to where it needed to be, but Evans said they needed to see the number first, because the city wouldn’t want to take all the funds from citizens, adding it may need to be a gradual increase.
“I’m just giving you guys food for thought, it’s not something you need to make a decision on right now,” Evans said. “But if we don’t do something, four years down the line we’re looking at the system being at $555,371. 83.”
