Marion voters will decide water, sewer debate

MARION, S.C.-- After eight months of negotiations the City of Marion has reached an agreement with Grand Strand Water and Sewer Authority to sell it’s water and sewer system, but the final decision will be up to Marion residents in a March 16 referendum.

“When I became mayor and began looking at some of our finances as it pertains to water and sewer I knew we had to do something,” Mayor Rodney Berry said.

Marion currently has $11 million in debt from water and sewer. Grand Strand Water and Sewer has agreed to purchase Marion’s water and sewer system for $13.6 million dollars, $11 million of that going to pay off the city’s water and sewer debt and $2.6 million to be paid directly to the city.

In addition to that Grand Strand Water and Sewer Authority will give Marion seven percent of Marion’s yearly operating revenue. At current rates, that would be $150,000 per year.

“So as the system grows and prospers the city is guaranteed to participate,” Fred Richardson, Chief Executive Officer at Grand Strand Water and Sewer Authority said.

Marion residents would also see their rates decrease to what they were prior to the last increase in August 2009. Grand Strand Water and Sewer Authority has agreed to not raise rates again in Marion until July 2012. After July 2012, rate increases would be based off percentages and Marion would not have a higher percentage increase than Horry County residents.

“We’ve lost money for sometime, as many of you are well aware of we raised rates on our water this past time. I would be raising rates every year from here on out we have to, it’s irresponsible not to when our expenses are going up,” Berry said.

Richardson said they would keep all of the Marion city employees. He also said city employees would keep their same seniority and would not lose benefits.

“We have the lowest rates of any public water sewer authority on coast of South Carolina,” Richardson said.

They are currently charging Horry County customers a minimum of $41.83 for 8,000 gallons. Marion residents are currently paying a minimum of $58.83 for 8,000 gallons. If Grand Strand Water and Sewer Authority takes over Marion’s rates would be lowered to a minimum of $50.20 for 8,000 gallons.

They would be taking over around 3,300 customers Richardson said.

Those 3,300 customers would have a $8.37 higher minimum payment than Horry County customers totaling $27,621 more per month and $331,452 more per year.

Richardson contributed the higher rate to a few factors. He said it is partially because of the debt acquired by Grand Strand Water and Sewer Authority in the purchase of Marion water and sewer.

Richardson also said it was the deal Marion worked out with Grand Strand Water and Sewer Authority. “They could have worked out a deal with lower rates for Marion customers and not received the $150,000 projected payout,” Richardson said.

Grand Strand Water and Sewer began in Horry County in 1971. Serving more than 60,000 customers their goal has been to be the regional leader in quality and cost of water and sewer products and services. Last spring they took over the Sellers sewer system.

Berry believes Grand Strand Water and Sewer is the best option for Marion.

“I’m going to push this because I think this is the best thing for our city and county first and foremost. I’m real please with the ways things are going but the ultimate thing is you will make the decision,” Berry said.

There will be two more informational meetings held at the Marion Opera House, Feb. 23 at 10:00 a.m. and March 2 at 5:30 p.m.

Marion residents will vote on the water and sewer referendum on March 16.