Jun. 20--In two weeks, a year of discussions, research and evaluations will reach a milestone: The Decatur Utilities board will decide whether to move forward with water and wastewater rate adjustments.

During Friday's board meeting, General Manager Ray Hardin said employees evaluate comments concerning the rate study before bringing a resolution to the board.

"We will continue to evaluate and compile the feedback we received and propose final implementation for the board's approval in the next one or two weeks," Hardin said.

The feedback comes from meetings conducted with customer and interest groups predicted to experience the heaviest impact from rate increases.

While DU will apply the suggested rate increases to all customers, how the changes will affect customers depends on the amounts of water and wastewater involved. According to DU, water and wastewater comprise 12-15 percent of an average residential customer's monthly bill, less than the percent generated by industrial customers.

"Industrial customers are unique because they are huge water and wastewater dischargers," Hardin said. "The water and wastewater component makes up a big part of their expense."

After initially presenting the study's results to the board in May, Hardin said DU conducted meetings with the economic development community, the Decatur-Morgan County Chamber of Commerce, industrial customers, developers and each of the City Council representatives.

Board Secretary Hugh Hillhouse questioned how representatives of the 12 industries who attended the meeting reacted to the proposals.

"Once they were presented with all the information, the predicted costs, revenue and compliance issues we're dealing with today, most of them understood the need for the changes," Hardin said.

For the industries, DU offered to conduct a 12-month individualized financial picture, calculated on the proposed rates and the average usage.

"This picture will give them insight of how the recommendations would impact them personally," Hardin said.

Along with rate adjustments, the study, conducted by ADL Inc. and Burton and Associates, proposed the establishment of impact fees. The fees, officials said, would cover the capital costs required to service new developments.

The study proposed basing the cost on the size of the pipe. During a meeting with DU, developers suggested basing the cost on the number of water fixtures in the home. Hardin said DU is evaluating the option.

Depending on DU's final recommendations, the board could act on the base rates and the impact fees or only the rate changes.

Hardin said whether DU presents the impact fees to the board depends on further research, evaluation of the feedback and the proposed timetable for implementation.

If the board approves the proposals, the recommendations would go before the City Council. To implement the changes, DU must receive approval from the council.

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