Water and sewer tap rates could increase in Algood next year.
Mayor Lisa Chapman-Fowler said the rate increase would help put Algood back into the black for utilities.
“It was amazing to me to find out when Algood does these jobs and puts in these taps, how expensive they are for the city,” Fowler said. “And to realize that even with what we are presently charging the city is operating at a deficit.”
An ordinance regarding the rates set an average increase of approximately $360. Fowler said she does not want to discourage development within the city.
“I never like to raise rates on anything, but we can’t operate the town at a deficit,” Fowler said. “Again as being stewards of the funds of the City of Algood, we need to consider looking at these things and giving it serious consideration.”
Fowler said if Algood does not operate in the black, the State will come in and adjust rates for the city.
City manager Keith Morrison said the proposed water and sewer tap rates are similar to Cookeville’s rates.
Algood also discussed dropping the deposit fee for new residential costumers desiring water or sewer services.
Morrison said the current deposit system does not work well for the city.
“Basically what we are doing with this ordinance is replacing municipal code and doing away with the deposits and just doing a straight fee, which is less than what the deposit was, to begin with,” Morrison said. “This is matching other cities around us. Most municipalities are moving away from deposits because they are such a headache to deal with.”
The new application for water and sewer service would require a $45 fee per meter.
Morrison said each ordinance will help Algood operate the utilities without overspending. Both ordinances passed on a first reading Tuesday.