Statesboro City Council approved an increase Tuesday in the base charge for most water and sewer bills, but with a promise to create an equal credit for low-income residential customers age 65 and over. People who pay city bills with a credit card will also pay a new 2 percent fee.

The council approved the increase in commercial and residential water and sewer base charges as part of the budget for fiscal year 2017, which begins July 1. City Manager Robert Cheshire recommended this increase to help replenish the water and sewer department’s operating fund as it pays for pipe replacement and repair.

Residential and commercial customers inside the city limits will see a $2 increase in their monthly bill. Outside the city limits, commercial customers will see a $3 increase and residential customers a $4 increase.

No council members objected outright to increasing fees, but Councilman Phil Boyum at first argued for distributing the increase differently.

“Our residents, if you look at the demographics, they’re at the lower end of the income spectrum, so even a couple or three bucks a month makes a big difference when you’re on a fixed income of $800 or $900,” Boyum said.

Councilman Sam Jones said he shared this concern.

Boyum suggested either increasing the rates based on the volume of water used, instead of the base charge, or increasing the base charge for commercial users more than for residents.  A $4 increase would not be an undue burden on most businesses, which could pass the cost on to their customers, Boyum said.

However, staff members pointed out that residential customers greatly outnumber commercial customers. Applying the increase equally to base rates was the simplest way, Cheshire said. The city’s billing software, which is scheduled to be replaced, would make applying a usage rate increase equitably to the various brackets difficult, he and other staff members have said.

“My concern with changing the (usage) rate was simply that we’re not able to break down those tiers, unfortunately, enough that I would feel comfortable in knowing exactly what that impact is,” Cheshire said. “I hope to be able to do that next year with the software.”

Water and Wastewater Director Van Collins, has said that more money needs to be spent replacing and rehabilitating failing pipelines, especially sewer lines.

In past years, Special Purpose Local Option Sales Tax revenue was spent for this, but over the past five years, most of the SPLOST money went to expansion projects.

The fiscal 2017 budget earmarks $1.5 million from the water and sewer operating revenue to go to capital improvements. Of this, $950,000 will go to rehabilitate sewer lines in two subdivisions, Collins said previously.

The rate increase is projected to generate about $330,000 of the $1.5 million.

A second credit

This is Statesboro’s first increase in residential water charges, as such, since 2010.

However, council members noted that the stormwater fee, created last year, added $3.95 to each household’s monthly bill, so the $2 will be a further increase. But the council authorized a $3.95 monthly credit last year for residents age 65 and up who qualify as low-income. Although it offsets the stormwater fee, the credit is applied to the solid waste part of city utility bills.

From Tuesday evening’s agenda, the council unanimously authorized Mayor Jan Moore to sign an agreement with the nonprofit corporation Concerted Services Inc. for its help verifying utility fee credit applications.

This provided an idea for moving forward with the budget vote when Councilman Travis Chance proposed adding a $2 credit for relief from the water base rate increase.

“For those who are impoverished and those who are over 65, is there any way to get them a bigger piece of the pie than four bucks? can they apply for a six-buck credit?” Chance asked.

After hearing Chance’s suggestion, Boyum said “I like it.”

Next, the council agreed to the separate 2 percent “convenience fee” on credit payments with no further discussion. Boyum made a motion, seconded by Jones, to adopt the budget with both fee increases. It was approved 4-0, with Councilman Jeff Yawn absent.

Moore said the proposal to create the credit offsetting the water bill increase will be presented at the next meeting. This will be held July 19, since the July 5 meeting was cancelled by another vote Tuesday.

Just for seniors?

What wasn’t clear from the discussion was whether council members wanted the new credit to go just to senior citizens who qualify as low-income, or both to seniors and to people of all ages who qualify as low-income.

Boyum said it will be modeled on the credit created to offset the stormwater fee. He then consulted a city staff member Wednesday about how that works.

“The credit is indeed designed for low-income seniors,” Boyum said.

This was decided for the stormwater credit after other Georgia communities were surveyed, and on a recommendation from Concerted Services, he said. As designed, the credit is for people 65 and older within certain income limits.

But Chance said he had been thinking of a credit both for seniors and low-income families.

“It’s my understanding that the intent of council is we want to make sure that the credit is extended to those who fall below the poverty line as well as the senior citizens who are most likely going to be living off fixed incomes,” Chance said.

The council, he noted, will be revisiting the issue and could revise the credit.

Councilman John Riggs also thought the credit would be for “anybody who is low-income” will try to make it so, he said Wednesday.

“If somebody works at a minimum-wage job and has two children, they absolutely ought to be able to get the rebate,” Riggs said.

Herald reporter Al Hackle may be reached at (912) 489-9458.