The Richmond Register

Local News

December 16, 2010

Fiscal court approves sewer rate increase

RICHMOND — Several residents expressed concern Wednesday about a sewer rate increase being considered by the Madison Fiscal Court.

The residents, who are served by the Northern Madison County Sanitation District, attended Wednesday’s meeting, where the court approved second reading of an ordinance which allows the district to raise rates for 2011, and raise rates by10 percent in 2012 and 10 percent in 2013. In 2014, the rates will be tied to the federal consumer price index.

Many of the residents who attended the meeting live in Battlefield Estates. A number of the district’s customers live around Exit 95 off Interstate 75. Residential customers also live in Executive Park off Berea Road and in the Moberly community off Irvine Road.

Dwight Barkley said he and his Battlefield Estates neighbors wanted to know why the increase was necessary and inquired about where the money would go.

Operating costs have risen 54 percent from 2007 to 2010, said Jim Rowe, chairman of the Northern Madison County Sanitation District, but the district has not increased its rates in four years.

Electric rates have increased 46 percent, health insurance for employees is up 42 percent, EPA testing supplies have risen 49 percent, chemical use is up by 97 percent and audit requirements have increased 100 percent, Rowe said.

“It is expensive to run a sewer system, to do the testing, keep the pumps running and all of this,” Rowe said.

He said the district is running $249,000 short this year in its budget and that is why the increase was requested.

Last year, the district’s revenue was $806,000, said Kent Clark, county judge/executive, but operating costs were more than $1 million.

Fewer home construction projects account for part of the problem, Clark said. The district is projected to serve about 2,000 customers, but only serves 1,700.

“They have to have a sewer rate increase to continue to operate. The economy is tough, but you have to have some of these things and people have to have utilities, and they’re going to continue to go up,” he said.

Rowe said if rates are not raised, the district would likely fall into receivership, with the Kentucky Infrastructure Authority taking over and imposing its own rates, which he said would be much higher.

Such a scenario would likely disqualify Madison County for future low-interest KIA loans, he said.

Magistrate Roger Barger, who represents residents in the Northern Madison County Sanitation District, criticized the sanitation district for not taking action when they first realized operating costs were rising and revenue was declining.

He said if the district had not waited, smaller increases could have been added incrementally.

“Over the past three years, you’ve known the cost is going up,” he said.

Magistrate Bill Tudor said Barger’s criticism was justified, but, “I don’t think we can spend too much to keep our water supply a healthy water supply,” he said.

“It is a bitter pill to swallow, but it is part of the costs of our standard of living,” he said.

According to the new rate structure, the new minimum rate (for 0-280 cubic feet) is $34.50. For 281 cubic feet and above, there will be a $5.75 charge for every 100 cubic feet. The maximum monthly charge is capped at $57.50.

Customers using 4,000 gallons a month — or 535 cubic feet — would have a sewer usage fee of $49.15, according to information provided by the judge/executive’s office.

In other business:

• The court approved the purchase of a new coroner’s van.

Coroner Jimmy Cornelison said his current vehicle — a cargo van — was purchased in 1999 and, “it has just about had it,” Cornelison said. “We have trouble getting it started.”

The new van, which will cost about $30,500, will separate the driver from the back of the van, which will help when bodies must be transported to Frankfort for autopsies.

In two separate incidents this year, the coroner’s office has had to take severely decomposing bodies to Frankfort, Cornelison said.

“It is a health issue,” he said.

Cornelison said the van would last about 15 to 20 years, because the vehicle is parked inside and the farthest it must be driven is to Frankfort.

• First reading was approved for a land use change at 1239 Barnes Mill Road, changing the zoning for .44 acres from Urban Corridor Residential to Urban Corridor Neighborhood Commercial. The owner of the land plans to open a gift shop.

• The court honored Walter Lee Cornelison for his service to Madison County’s water districts since 1985. He is retiring.

• The 2011 budget for the Madison County Clerk’s Office was approved.

Lorie Love Hailey can be reached at editor@

richmondregister.com or 624-6690.

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