The town of Caledonia is one step closer to securing a rate increase for the town’s water service.
During Tuesday night’s board meeting, Caledonia Water Superintendent Benny Coleman informed the board of alderman that the county had two remaining steps before the increase goes into effect. The town has been working toward a rate increase since last June.
The flat rate will increase to $7.25 per 1,000 gallons. Currently, residents who live inside the town limits pay a minimum of $12 for up to 2,000 gallons while residents who live outside the town limits pay a minimum of $14 for up to 2,000 gallons. Under the new system, customers will pay a flat fee regardless of where they live.
Due to a new law passed this past legislative session, in order to enforce a rate increase in water supply, the town has to agree to either return the resident’s deposit after a one-year period or add interest to the payment and deduct the earned interest from the resident’s next bill.
Coleman recommended adding interest to the payment instead of refunding the deposit, estimating the latter option would cost the company anywhere from $75,000 to $100,000.
The board unanimously voted to add the applied interest as a credit to customers’ bills instead of returning the deposit fee.
In other news, the board voted to approve advertising for a new town clerk. Current town clerk Judy Whitcomb, who retired in January, has been filling in since her replacement resigned in April.
During Tuesday night’s meeting, Parham proposed allowing candidates to apply until June 28. The town has already received seven applications for the position.
Sarah Fowler covered crime, education and community related events for The Dispatch.
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