Lenoir's water, sewer rates likely to see increase

Feb. 20--Residents and customers of the City of Lenoir's water and sewer system can expect to pay more for services when the new fiscal year begins, after the Lenoir City Council indicated it will raise rates as part of the 2010-11 budget.

During a preliminary budget meeting Friday at the Lenoir Police Department Training Room, the council and department heads reviewed the city's fiscal situation and its ongoing needs.

And although City Manager Lane Bailey shut the door to any increase in the property tax rate, he agreed with McGill and Associates engineer Denny Martin in requesting the rate increases of 2.9 percent for water services and 5 percent for sewer.

Bailey noted the city did not raise water rates last year, adding that increases are tied to a Southeast consumer price index. Martin said the rise in sewer rates is due to pressing infrastructure needs.

"If it weren't for age of the system and the need for capital improvements, we would not be looking at a rate increase," Martin said.

Lenoir Public Utilities Director Mack "Buddy" Edmisten said the increases will mean Lenoir residents will pay between 61 cents to $1.46 more per month for services, depending on usage.

As the supplier of water to much of Caldwell County, those using the county's water system can expect to pay more as well. The county has an agreement with the city to purchase water through the decade.

Aside from the $5.3 million project to extend the city's raw water intake system farther and deeper into Lake Rhodhiss, Lenoir also is looking to correct inflow and infiltration issues at its Gunpowder Wastewater Treatment plant, while also seeking solutions to low pressure flow in the West End community and replacing a chemical storage unit at the main Bernhardt Water Treatment plant.

Lenoir Fire Department Chief Ken Briscoe sought to assure residents that his units have sufficient water supplies to fight fires in all parts of the city.

"I don't want the citizens to lose confidence," Briscoe said. "We have enough water to handle structural fires within (all) areas."

In reviewing the current budget outlook, Assistant City Manager/Finance Director Danny Gilbert said the city is in solid shape, despite fighting headwinds such as lower property and sales tax receipts, along with a decline in water and sewer fund revenues.

Looking ahead, Gilbert said, "Next year is even going to be a little bit tougher than this year."

Bailey retraced the city's fiscal course since 2005 and noted how the undesignated fund balance had grown from 12.6 percent to more than 20 percent.