GREENSBORO — City water users could see a 9 percent rate increase starting July 1.
The change, recommended by the city staff Tuesday, would increase the monthly bill of an average water user by $3.15 to $37.85.
“We think this is what we ought to do to keep the integrity of the water system,” City Manager Rashad Young said.
But City Council members have to make the final decision.
They will likely decide whether to accept the proposed rate increase in coming weeks.
Since 2004, water and sewer rates have increased between 8 and 15 percent every year except 2010. The rate increases have paid for major projects such as the Randleman Regional Reservoir and items like new drinking water quality requirements.
The city needs a 9 percent increase to keep up with the maintenance demands of the water system and to keep the finances of the utility healthy, city staff members said Tuesday. The rate increase would generate $7.5 million.
Staff members also projected the utility would require increases of between 1.25 and 6.6 percent over the next three years.
Councilman Robbie Perkins said the staff made a compelling argument that the rate increase was necessary.
“There is only so much you can do to cut the operating costs out of it. Your major expenditures are pretty clear-cut,” Perkins said.
Other council members said they understood that water resources require capital resources.
“Anybody in business knows you’ve got to invest,” Mayor Bill Knight said.
But whether he would support the proposed rate increase, Knight said he would have to review the information the staff presented before making that decision.
Councilwoman Trudy Wade, who pushed for the City Council to keep rates flat last year, said she wanted to hear from constituents.
“I would like for the public to hear about this before we decide,” Wade said.
Contact Amanda Lehmert at 373-7075 or amanda.lehmert@news-record.com
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