— When the Athens City Council meets Monday, members will vote on the first of a three-part phase in over two years of a 30-percent rate hike for water and wastewater.
The October 2009 closing of Pilgrim’s Pride suddenly cut $1 million in revenue from the City of Athens Water and Wastewater Department. Sales to the poultry plant accounted for 10.5 percent of the city’s total water revenue and 24 percent of wastewater revenue.
That loss, combined with an increased debt service from the construction of a $25 million wastewater facility, created a $3.3 million negative impact on the city. The wastewater plant was needed, Water/Wastewater Department Manager John Stockton said, to comply with standards of the Alabama Department of Environmental Management. The existing facility is outdated and too small.
Athens Utilities Manager Gary Scroggins estimates that, if the city does not act, fiscal year 2010 will see a budget deficit of $517,000, and that deficit will increase to $1.8 million in 2011.
Cutting expenses will not make up the difference, he said.
The proposed increases would be in 10-percent increments, effective April 1, 10 percent by Oct. 1 and 10 percent in October 2011.
Other business
Other items on Monday’s agenda include:
• Reappointment of Richard Cook to the Personnel Board;
• Rejection of a Rescue Tools bid for the Fire Department;
• Agreement with the Alabama Department of Transportation to construct additional lanes under the CSX overpass on U.S. 72;
• Approval of Dunivant Engineering for site design for the new First Station No. 1;
• Agreement between the city and Limestone County to build a new library;
• Amendment of service charges for automatic sprinklers and fire hydrants;
• Approval of drainage work for Westview and Vine streets;
• Approval of associated costs of the new City Hall;
• Approval of purchase of skunk traps for the Police Department.
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