COUNCIL APPROVES WATER/SEWER INCREASE

By Jon Mayhew

Lincolnton city residents; open your wallets and say “ouch.”

Thursday night, the Lincolnton City Council unanimously voted
to raise water/sewer rates for residential and commercial
customers, something predicted on The Carolina Scoop more
than two weeks ago.

The increase of 24.5 percent translates to a family or business
using 6,000 gallons of water/sewer per month will pay an
average of anywhere between $12 and $15 per month starting
April 1.

The information first came to light during the recent City of
Lincolnton budget workshop, where city manager Jeff Emory
revealed to the Council water/sewer expenditures weren’t
matching up with revenues, something that’s against the city’s
bond covenant.

“They must match up,” said Emory. “We cannot take money from
any other area to fund water/sewer. Water/sewer needs to be
self supportive.”

City staff contacted the local government commission and
bondholder attorney to see if funds elsewhere could be
transferred into the water/sewer fund.

The short answer was “no.” If the city didn’t match its bond
covenant, then city financial statements could be audited and
someone else other than the Council could decide water/sewer
and other rates.

With the bad economy, water usage has drooped according to
Emory.

“In the mid 1990s, there was about 4.7 million gallons per day in
water/sewer usage. Over the last several years, that’s dropped to
below 3 million gallons per day during the fiscal year 2008-09,”
Emory said.

Council also voted to leave industries out of the increase.

“If we increase the rates to industries, we’re putting the final nail
in the coffin,” said Mayor David Black. “That means the
industries would close and we’d lose more than 500 jobs, then
the Council would have to raise rates 75 percent.”

Of the top 10 largest water users in Lincolnton, two industries –
Mohican Mills and McMurray Fabrics – have cut production.

Several Council members – including Fred Houser, Carrol
Heavner and Dr. Les Cloninger – said the board “had no choice”
but to raise the rates.

“This is the situation we find ourselves in,” said Cloninger. “It’s
not sitting very well with our citizens but we have to do this.”

So what about electric rates? After the meeting, Mayor Black
gave The Carolina Scoop of indication of things to come.

“We may be lowering electric rates,” said Black.

The Lincolnton city budget will officially be presented in May and
Council members have until June 30 to adopt the new budget.

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