Thursday's Internet Edition, September 09, 2010.

“Our sewer rates are really low,” Mayor Terry Williams told council members Cecil Banks, Toby Ford, David Holland, Aaron Richardson and Robin Stump at their monthly meeting Thursday.

Williams said the city would not be eligible for grants to improve the system unless the average bill, based on usage of 4,500 gallons per month, was at least $35.

The city currently charges $26.33 for 4,500 gallons and has a minimum bill of $11.70.

A survey done last week by the W.Va. Public Service Commission of the 343 sewer systems in the state showed Spencer’s rates were higher than 105 other systems, including nearby communities of Ripley, Ravenswood, Pt. Pleasant and St. Marys.

Spencer’s rates were lower than 237 sewer systems, including Reedy (at $28.08), Mineral Wells and Elizabeth.

Both Clay and Grantsville, which were among the highest rates in the survey, charge their customers more than $50 per month.

The city is preparing to embark on sewer system upgrades that will cost about $2.8 million.

Williams said the project has two more phases, both unfunded at this point, each of which will cost about the same as the first phase.

He said the only other alternative was to turn the city’s water and sewer systems over to a private company.

Williams presented council members with a resolution to pursue funding for the additional improvements. He said funding was currently available at low interest rates and the resolution would help lock in those rates.

“We either have to do this or punt,” Williams said of a rate increase.

Holland asked if the rate increase could be phased in.

“I don’t think so,” Williams said. “In the last 20 years we’ve lost every industrial customer we had. There’s no other route to go.”

Williams said the sanitary board would meet this week and likely approve a 12 percent increase to go into effect immediately. He said that would generate about $60,000 per year.

That would put the average bill at about $29.50, still below the level Williams said was needed for additional grants. As a result, more rate hikes might be expected in the future.

Stump asked if the city had received any legitimate offers to buy the utility systems, but Williams said he had not sought any offers.

Richardson said if a private company did buy the water and sewer systems, they would not only have to cover costs, but also generate a profit.

Banks said he did not think the public would object to a rate hike, if they understood the reasons behind it.

“If we get out and sell it, I think the public will agree,” Banks said.

In other business, Williams gave an update on the U.S. 33 East/Boggs Fork water extension.

He said a few thousand feet of line had been laid along U.S. 33 and, in the next few days, a second crew would begin working on Boggs Fork. He said there would be 107 users on U.S. 33, Boggs Fork and Slate Road.

He said 8-inch lines were being reduced to 6-inch to cut down on chlorine buildup, but the smaller line would still be adequate for fire fighting.

Marketing director Jacob Fetty also gave an update on upcoming activities.

He said the annual Heart Walk was being moved from Roane General Hospital to downtown Spencer and would likely take place in August.