Turkey Creek Council hears about a water rate study

The Turkey Creek Village Council, during its meeting Tuesday, heard from Todd Abshire, the wastewater technician for the southern part of the State of Louisiana, about a recently completed rate study by Louisiana Rural Water Association.
According to Mayor Phillip Cavins, the rate study was done to find out where the village needs to be to get additional grants and loans for the water system.
“For the first time in history,” Abshire said, “the State of Louisiana is not giving out money to those systems that cannot help themselves. If you’re not sustainable, then you’re not getting a grant.”
Mayor Cavins added, “We need a 1.00 sustainability factor to break even, and we’re at a .93. So, we’re losing money every year.
Abshire went through the formula used in the rate study.
“We keyed in 1,623 residential customers,” he said. “For the first 2,000 gallons, you charge $13.50. For every 1,000 gallons after that, you charge $3.00. Your monthly minimum is $13.50 times 1,623 times 12, so that generates $262,926.00. The $3.00 consumption charge averages $21.69.”
He continued, “For your small commercial and police rate, there are 18 customers. For the first 5,000 gallons, they pay $20.00. For every 1,000 gallons after that is $3.00. For your 10 school customers, the first 30,000 gallons is $125.00 and $3.00 for every 1,000 gallons after that.”
According to those figures, the village’s sustainability factor is .93.
Abshire explained the factor needs to be around the range of 1.10 to 1.15 to be considered sustainable.
He went on to explain recommendations on water rates based on the rate study.
“For your 1,623 customers,” Abshire said, “if you go from $13.50 for the first 2,000 gallons to $17.00, you would go to $331,000.00 from $262,000.00. On your consumption side, if you go from $3.00 to $4.50, the difference is from $159,000.00 to $239,000.00.”
“On the commercial side,” he continued, “5,000 gallons for $20.00 would go to 4,000 gallons for $34.00, and your charge after from $3.00 would go to $4.99. On schools and large commercial, 30,000 gallons for $125.00 would go to 20,000 gallons for $170.00, and on the consumption side from 3.00 to $4.99.”
According to the recommended rates, the new average residential bill would increase to $29.29 from $21.69. The total revenue would be $677,000.00. Those amounts would yield a sustainability factor of 1.18.
Abshire, based on those amounts, recommended implementing a reserve account for the water system.
He stated, “If any entity would look at your system, they would see not only is sustainable but it’s funding a reserve account. It’s more likely for the state or any other entity to come out and help the Village of Turkey Creek.”
The council voted to introduce an ordinance to follow the recommendations of the rate study. A public hearing will be held on the matter before next month’s meeting on Tuesday, December 17, at 6:15 p.m.
For a recap of other business from Tuesday’s council meeting, pick up a copy of Sunday’s edition of the Ville Platte Gazette.