Oneida Water And Sewer Rates To Increase 40% In 2012

Oneida, TN (2011-12-23) Beginning in January, customers of the Oneida Water and Wastewater Department will see a significant increase in their water and wastewater rates. Some of the increase will be offset by the removal of an existing surcharge.

In a letter dated December 16, 2011, Manager Johnny Acres of the Oneida and Wastewater Department announced the utility would increase both its water and wastewater rates. “Due to inflation, the economic downturn, and the rising costs of chemicals, parts, and other materials, the State of Tennessee Water and Wastewater Management Review Board is requiring Oneida Water to raise water and sewer rates effective immediately,” wrote Acres.

The new rates reflect a 40% across the board increase on both inside and outside the city water and sewer rates. According to the letter, customers inside the city will be paying a $12.11 base fee for the first 2,000 gallons of potable water and $4.55 for each additional 1,000 gallons. The increase is the first for the utility district in 10 years, stated Acres. According to Municipal Technical Advisory Service (MTAS), the existing rate for customers inside the city is $8.65 for the first 2,000 gallons and $3.25 for each additional 1,000 gallons. According to MTAS data, the rate hadn’t change since July 2000. Customers outside the city will pay $17.78 for the first 2,000 gallons of water and an additional $7 per 1,000. Prior to the increase, outside residents were paying $12.85 for the first 2,000 gallons, and $5 for each additional 1,000 gallons.

Sewer rates will likewise increase by an estimated 40%. Customers inside the city will pay $16.80 for the first 2,000 gallon and an additional $8.40 for each additional 1,000 gallons. Prior to increase, city residents were paying $12.00 for the first 2,000 gallons and $6 for each additional 1,000 gallons. Customers outside the city will now pay $17.81 for the first 2,000 gallons and $8.90 for each additional 1,000 gallons.

While water rates hadn’t increased in ten years, sewer rates were increased in January 2005. In an effort to offset increasing costs, the Oneida City Council then approved a restructuring of sewer assessments, reducing the gallons used for base fee calculation from 4,000 to 2,000 gallons. The change resulted in an average increase of $10 per customer.

While usage rates increased, a $4.50 surcharge that had been assessed to all customers will be removed. Effectively, the surcharge will offset most of the usage increase for water customers inside the city that typically uses less than 3,000 gallons of water per month; however, those same customers that also have sewer services will see an estimated $8 per month increase on their utility bill. In 2005, the average customer was reportedly using about 4,000 gallons per month, meaning the average increase for those customers inside the city would be roughly $12 per month.