Elmer City to consider setting annual utility increases

Elmer City leaders will consider a method of building in minimal annual raises on utility rates to keep from falling behind costs of providing the services.

City Clerk/Treasurer Kelly Ross asked the town council Thursday to consider the step and hold a public hearing on it at the scheduled February meeting.

The council approved a resolution for increasing the percentage of water and sewer service sales that is sent to the city’s reserve funds from 1.5% to 2.5%.

Ross suggested a $1 annual increase on each rate for garbage collection, sewer, and water service.

Ross told the council the city council the town barely broke even on its garbage service in 2024, with just $76.49 left over after paying the bills the town incurs for the service.

“That doesn’t even pay for me to, a half a dozen times a month, take care of changes to people’s garbage can sizes,” take care of dumpsters and just email back and forth to get that business carried out.

She suggested the council consider increasing the rate $1 each month, which would leave about a $1,600 margin at the end of the year.

She also suggested a similar increase for water and sewer services, beginning in 2026 and increasing annually by that amount, a total of a $3 per month increase for water, sewer and garbage service.

The council also discussed other amounts, perhaps based on a percentage, that might be appropriate.

Maintenance Superintendent Jimmer Tillman recalled when the city failed to raise rates for several years, which eventually put it in financial difficulties that caused the council to look at much larger rate increases. He said the council has wanted to avoid that scenario again.

“So this is a discussion for you all to think about it, because … we’ll have to do a public hearing the next month to make it official,” Ross said.

The next council meeting is set for Feb. 13 at 5:30 p.m.

Doing better at its financial management these days, the council agreed Ross should transfer some reserve funds into a state investment pool, which pays interest. Ross will move some $114,900 from water, sewer and reserve funds to the investment pool, still leaving working amounts for in those separate funds to work with.

“When I first come to work here, we were about broke,” Tillman recalled. “This is a big turnaround since I first started here, Kelly. … “we were in trouble” 20 years ago.