High Springs talks five percent sewer rate increase

HIGH SPRINGS – Residents of High Springs may face higher sewer and water bills in the near future as the city attempts to stop the drain placed on funds by the debt-ridden sewer system.

During a city commission workshop on Thursday, May 3, the commission directed City Finance Services Director Helen McIver to calculate numbers based on a five percent increase in the sewer base rate for both residential and commercial users, and a jump from 5,000 to 10,000 gallons of usage allowed on residential sewer bills without extra charge. Vice-Mayor Bob Barnas also proposed a $10 monthly charge on vacant properties as the City has already invested in the infrastructure to serve those properties.

“I think it’s a step in the right direction to cure the problem of our bill,” Barnas said.

Currently, the city finds itself $8.5 million in debt to pay for the sewer system. As it is now, residents pay $34.41 for the first 5,000 gallons of sewer usage each month, and commercial users pay $46.44 for the first 5,000 gallons used.

In an earlier commission meeting, Barnas told the commission that sewer rates would have to be set at $63.86 to cover the cost of the sewer debt and its operating expenses, but that would not provide enough for a profit.

“If we don’t get it corrected in the next few years, the state will step in and they will correct it. They will raise your fees and they won’t ask you,” said High Springs Mayor Dean Davis. Even though he ran on a platform on not raising taxes, Davis said during the meeting that, at the time, he did not realize how dire the situation was.

Sewer is the city’s biggest concern, said McIver.  Even with money being transferred from the water fund, the sewer has eroded its reserves.  McIver estimated that the city needs an additional $75,000 to $100,000 in sewer revenue annually to keep the sewer fund afloat, especially since there has been a decline in water revenue over the past four years.

With rising maintenance costs and warranties expiring, McIver said she would lean toward the latter to cover the future expenses.

During the May 3 workshop, the commission agreed not to increase water or garbage rates for the time being. However, a $1 increase on garbage was discussed, and may be looked at in the future. The city considered an audit on garbage users to ensure all those using city garbage services are being charged.

The commission hopes to use the USDA $1.6 million grant funding to conduct a study to evaluate the performance of the sewer system.

City manager Jeri Langman said the city’s engineering firm maintains that similar systems in other communities have a significantly longer lifespan while experiencing fewer problems, adding that the study “…would go a long way in helping us provide better service to our residents, to find out what the issues are…”

If USDA approves use of the funds to pay for the study, the city will then send it out for bid. After bids are received, the City will have 60 days to provide plans to the USDA.