Kingston Springs tables $27 sewer hike, explores smaller base rate increase

The Kingston Springs Board of Commissioners postponed a final vote on a proposed sewer rate increase March 19, opting instead to pursue a smaller base rate hike combined with a new tiered system to target heavier water users.

The board had been scheduled to approve an ordinance raising the sewer base rate by $27.22 per month to cover principal and interest payments on financing for needed sewer system repairs. Instead, commissioners unanimously voted to scrap the proposal and direct staff to draft a new ordinance that spreads the increase across both the base rate and new tiered usage charges.

City officials said the system needs to generate about $20,414 per month to meet the loan payments.

During the discussion, commissioners weighed several scenarios that would reduce the base rate increase while charging higher rates for larger water users. Some members said they were uncomfortable relying too heavily on usage fees, noting the town must ensure a stable revenue stream to cover the debt.

“I’m not comfortable going below 50 percent of it as the base rate increase,” Vice Mayor Mike Hargis said, noting that usage levels can fluctuate.

Others also raised concerns about the impact of shifting too much of the increase onto a small number of high-volume customers, which could include businesses, schools and a handful of residential users.

Currently, the Town of Kingston Springs charges its sewer users in three categories: Base Fee (includes first 1,000 gallons); 1,001-12,000 gallons; and 12,001 and above. City Manager John Lawless found that there are 15 customers averaging more than the standard 12,000 gallons per month. Of those, six are using more than 50,000 gallons per month.

By the end of the discussion, commissioners indicated support for a plan that would raise the base rate by $17.50 and add new tiered usage increases above that level: an additional $2.40 for 1,001 to 10,000 gallons; $3.60 for 10,001 to 50,000 gallons; and $5.40 for more than 50,001 gallons. Staff will prepare sample bills based on the proposal before the next meeting.

The board is expected to consider the revised ordinance on first reading at its April 16 meeting.