The town of Monterey will spend $5,000 for MTAS to conduct a water and wastewater rate study.
Mayor Bill Wiggins said the study will help the city negotiate rate structures for one of the city’s largest customers.
“We are in some exploratory stages with Perdue in terms of water and sewer rates,” Wiggins said. “But we’ve got to look at the whole system and make sure we’re being fair and equitable for all customers. That’s what this study is to determine.”
Monterey officials have discussed possible rate increases to help pay for a new wastewater treatment plant. Consulting engineer Nathaniel Green recommended a proposal earlier this year that would have substantially increased Perdue Farms’ surcharge for sewer services.
Wiggins said the city hasn’t conducted a rate study since before 2014.
“It’s timely that we do check our rates and see how they stack up and to give us some leverage in negotiations with our customers,” Wiggins said. “Relatively speaking, this is not much money for such a massive study.”
The Board of Mayor and Aldermen voted to approve the rate study during Monday’s monthly meeting. Wiggins said the town will explore several grants that could be used to pay for the project.