By David A. Farrell, Item Staff Writer
The Picayune Item
POPLARVILLE —
Pearl River County Utility Authority Operations Manager Cliff Diamond told supervisors on Monday that rate increases on sewerage charges are “imminent” and the seven-member utility board will be looking closely at a rate increase as it meets this month.
“We are in the same situation as everyone else,” he told supervisors. “We are in the process of looking at our budget right now, considering our rates.”
Diamond said that the revenues taken in by the PRCUA were not meeting expenses,
Diamond attended the board session on Monday to present the board with a copy of PRCUA’s recent audit.
Diamond said rates will be discussed at the authority’s next meeting.
Supervisors said they understood, that they themselves are wrestling with an out-of-whack budget, and Supervisor Hudson Holliday told Diamond that he believed the authority, if things don’t change, will be forced to look at turning its operations back over to the county’s two cities.
Diamond told Holliday that he did not see that scenario occurring, although he did say that the authority was going to have to move into the wholesale end of the utility business and not operate in the retail end.
That means, Diamond said after the meeting with supervisors, that the authority would sell wholesale services, such as treating sewerage or supplying water, to the county’s two cities, and would not be involved in any retail services, such as billing customers.
Diamond, answering a question from the audience, said that the authority was going into budget hearings in August and that if the board votes to raise rates, PRCUA will be required to hold a public hearing on the issue before doing so.
“It is a situation (a rate increase) that is imminent,” he said.
Diamond said the authority has meetings on the third Thursday of the month at 2 p.m., alternating between Picayune and Poplarville. The next scheduled meeting is Aug. 19 in the city council chambers in PIcayune. The meetings are open to the public.
Diamond told supervisors that the authority collects monthly utility payments in Picayune and Poplarville and in the old Dixie Utilities district near Picayune. He said Hide-A-Way Lake will come on-line shortly as a retail customer and should pay for itself.
Asked Hales, “You are not collecting countywide from everybody?”
Replied Diamond, “No, we live off the rates, and it’s important to know that the only source of revenue we have are rates.”
Added Diamond, “If I am short, and I am not wasting money, then the only way I can fix my budget problems is to raise rates.”
Said Supervisor Patrick Lee, “The only people they collect money from are people to whom they provide services.”
Diamond explained his revenue sources as: Poplarville sewer retail; Picayune sewer retail; Poplarville wholesale water; and old Dixie Utilities retail water and sewer.
Dixie Utilities encompasses the old Westchester and Inside Road areas.
The utility authority sells water wholesale to the city of Poplarville, and Poplarville is in charge of running the water to the customer and billing the customer. He said Poplarville purchases about $8,000 worth of water from the utility authority each month.
Diamond said that when the utility authority took over Poplarville’s sewerage retail business that the authority also took over the sewerage system debt which contains a $26,000 a month note. He said sewer revenue cancels out the note but leaves nothing else to cover expenses associated with the Poplarville operation, such as electric bill, treatment plant operation, and operator salary and repairs. “We are way upside down in Poplarville,” he told supervisors.
Hales asked Diamond why the sewerage and water bills were not equal like they used to be.
Said Diamond, “I think when the sewer system was transferred they were equal, but I believe that since then, Poplarville has gone up a little bit on water rates. We set sewer rates and they set water rates, and they bill for us.”
Holliday told Diamond, “It is my understanding that in your business you make money on water, but lose money on sewerage, and when you have both, it kind of works out.”
“I don’t even know if a tremendous rate increase would get you into a proper cash flow,” said Holliday, and Diamond agreed.
Holliday asked Diamond if there were a possibility of turning back over the utilities to Poplarville and maybe just selling them water. “What we have done is just create another level of government with the utility authority,” said Holliday.
Replied Diamond, “I have not heard our board talking in that direction, but I have heard them say, and what makes sense to me, is that we are building the big infrastructure like water towers and treatment plants, why don’t we become the wholesaler and allow the cities to be the retailer. Let Poplarville take their collection system back and we just charge them for what comes into the plant. To me that is the most logical thing. The idea from the governor was to set up a regional utility and not just construct the infrastructure and hand the keys back.
“I think your point, however, about the water supplementing the sewerage is a very important point, Mr. Holliday, and it’s going to be expensive to run the sewer without the water. If we had gotten the Picayune water system, we would be in a lot better shape,” said Diamond.
Also, Diamond said the authority expected $140,000 monthly in sewer revenues from PIcayune but the city is generating only about $100,000.
“We are not wasting money,” said Diamond. “We have three employees, modestly paid; we have no fleet of vehicles; no equipment; and a little office suite in Picayune. We are not wasting money. I would dare anyone to look at our books and show where we are wasting money.”
Supervisors plan to meet again next Monday at 9 a.m. in the board of supervisors meeting room on Julia Street behind the old courthouse.
