With the possibility of rate increases coming, about 50 residents of a gated community attended the Pearl River County Utility Authority’s public hearing.
Of the question cards submitted during the meeting, all of them listed Hide-A-Way addresses.
According to those cards the questions centered around whether the proposed rate increases could be staggered over the period of two to three years, if sewage could be metered separately from water usage, if government funding was used to build the wastewater infrastructure in the gated community and if the increase in rates will be used to maintain their system, or for every system the Utility Authority is responsible. Executive Director Ray Scott said $6 million in federal grant funds were used to construct the system, along with $1 million of loans the Utility Authority kicked in.
Scott said it will be up to the board whether the increased rates would be staggered, but expects their decision will be based on how that impacts the cash flow.
As to whether the rate increase to HAWL residents would be used to fund improvements in other areas, such as Picayune, Scott said the rate increase would actually bring operation costs to provide the service to HAWL residents to breaking even. No profit would be made from the increase, Scott said.
According to information provided to the Picayune Item for legal publication, the rate increases will bring the rates to Hide-A-Way Lake residents in line with what residents in the city of Picayune are currently paying. Residents in the gated community are currently paying $24.25 for the first 4,000 gallons of wastewater treatment, while Picayune residents are paying $29.75 for the first 3,000 gallons of the same service. According to the documentation, the cost for an additional 1,000 gallons is also up for an increase. Currently HAWL residents are paying $2.15 for an additional 1,000 gallons, while Picayune residents are paying $2.50 for an additional 1,000 gallons.
The proposed rate increase would call for a charge of $3 for an additional 1,000 gallons to all customers.
Scott said HAWL residents were getting a lower rate, from his understanding, because a promise was made that the board would not increase HAWL rates until other areas were increased, partially because it was unknown how many homes would sign up to be connected.
District V Supervisor Sandy Kane Smith attended the meeting to voice the concerns of his constituents. While he said he is having constituents on both sides of the fence sharing concerns, involving HAWL residents upset of such a high rate increase, and city residents wanting all customers to be on an even playing field. Smith feels the increase could be spread out, instead of being incurred all at once.
Scott said the board has not taken the rate increase lightly. Before making the decision they had an independent study conducted and looked at the cash flow.
“We’ve done all the due diligence we thought we could do, so we’re not asking for a rate increase for the sake of asking for one,” Scott said.
Other changes outlined in the proposal include increasing the residential water tap fee for a ¾ inch line from $350 to $750, increasing the residential water deposit from $125 with a $30 account setup fee to $200 with a $30 setup fee.
Scott could not say with certainty whether the board will make a decision on approving the rate increase at their next meeting, but expects it will be a topic of conversation. The next meeting is set for Feb. 18, at 2 p.m. in the board room at the Neal Road facility in Picayune.