Dothan City Commission votes to increase sewer rates

By: Debbie Ingram | Dothan Eagle
Published: September 23, 2009

The first sewer rate increase approved by the Dothan City Commission in more than a decade will go into effect with the October billing cycle.

The rate increases 75 cents per 1,000 gallons of water use, from $1.05 to $1.80, and applies to commercial, residential, and industrial users, as well as to RV parks.

Even though rates have not gone up since 1990 and the increase has been discussed and debated for months, with two sparsely attended public hearings held in August, two commissioners still voted against the increase, saying it was too much, too fast and creates a burden on fixed income residents.

And because funds from city electric sales have always made up the shortfall in sewer rates, Commissioner Keith Seagle said electric fees could be adjusted.

“The money that is currently being paid elsewhere, say in electric rates, should be considered for a corresponding decrease,” Seagle said. “Obviously we need the sewer system. We are being sued (for environmental infractions related to Beaver Creek Wastewater Treatment plant over-flows).

“We need the repairs. We have people who have to choose between food, prescriptions and paying their light bills. I don’t think we have given them consideration. I ask we sit this aside and give them consideration.”

Commissioner Amos Newsome said the city has not explored other options. He proposed spreading increases over 10 years. The new rate schedule increases the fees by 75 cents each October for the next five years. From 2014 and beyond, the rate increase will be 2.85 percent each year.

Increasing fees at this rate over five years instead of 10 saves the city approximately $23 million in interest on a $30 bond issue to pay for the decommissioning of Beaver Creek and the expansion of the Little Choctawhatchee plant.

City staff has said it will be five years before rates reach the point to where it can cover the cost of the debt service without other funding.

“Over the years, other commissions have ignored what we needed to do and that’s why the rates are what they are,” Commissioner Larry Matthews said. “If we continue to ignore it, the rates will have to be doubled. We need to stop passing the buck on to someone else. We need to do the appropriate thing.”

Commissioner John Craig said he shares Newsome’s concerns, but feels the prudent thing would be to move forward. “I can’t see burdening the people that much more. We have beat this to death.”

Commissioners Seagle and Newsome voted against the measure, which also raises sewer connection fees to a minimum of $850.