Rates
Will Be In Place After January 1, 2004
"Our
highest responsibilities are to ensure safe drinking water to our 14,000 customers
and to plan in advance so that needed services are available throughout Hendersonville.
Our estimates indicate that the proposed rate increases, combined with a bond
issues and loans will support system improvement needs over the next five
years." Tom Atchley, HUD
General Manager, October 2003
For
the first time in more than 12 years, the Hendersonville Utility District
has adopted a water and sewer rate increase to become effective in all bills
issued after January 1, 2004. -The new rates will amount to an approximate
14 percent overall increase in the combined water and sewer monthly bill,
or $4.60 increase per month, for an average homeowner using 5,500 gallons
of water.
-No
Rate Increase In The Past 12 Years
During
$18 Million Improvement Program: The Hendersonville Utility District is proud
to have been able to hold steady rates for well over a decade while completing
more than $18 million in water and sewer system improvements during the last
five years. However, the cost of ensuring safe drinking water and reliable
sewer services continues to climb, and additional system improvements totaling
more than $16 million are needed, prompting the need for additional funds
-Impact
On Customer Bills:
Under
the proposed rates, an average residential customer using 5,500 gallons of
water per month will see a combined monthly water and sewer bill totaling
$37.89 versus $33.29 under existing rates – a difference of $4.60. The
1400 White House Utility District customers who receive HUD sewer service
will see a 10 percent sewer rate increase. Both HUD and WHUD sewer customers
will be charged $1.10 per 1,000 gallons on their monthly bills under the proposed
rates, in order to recover a user charge from the Metro Water Services.
-Why
A Rate Increase?
Several
factors contribute to the proposed rate changes, including increasingly stringent
water quality standards, new security measures brought on by legislation following
the events of 9/11, and the overall need to improve aging water and sewer
facilities throughout the District. The fees will also support a portion of
the District's Capital Improvement Plan that calls for $16 million in facility
improvements and expansions during the next six years. This includes installing
sewer services in the Lakeview area and in unsewered areas within the Indian
Lake peninsula.-Tap Fee Decrease For Public Buildings: As part of considering
the water and sewer rate increases, the HUD Board of Commissioners also approved
a tap fee decrease for public buildings, which includes churches, schools
and government buildings.
-Tap
Fee Increase for New Construction; New Capacity Fee:
The
Board also approved increased tap fees for new connections to the water and
sewer systems, and established capacity fees of between $500 and $1,500 for
new developments in order to offset the increased costs of water and sewer
system improvements and additional sewer treatment capacity needs brought
on by increased demands.
-Upgraded
Bond Rating to A1:
Sound
financial management by the Board of Commissioners and staff has not only
allowed the District to hold steady rates for more than 12 years while constructing
$18 million in system expansions and improvements, but has also earned an
upgraded bond rate of A1 from Moody's Investment Services, making HUD one
of only a few utilities in Tennessee to achieve this top rating.
Questions
about the 2004 rate increase should be directed to:
Tom
Atchley,
HUD
General Manager Hendersonville Utility District
615-824-3717
