Olanta re-examines sewer rates after Lake City's increases

OLANTA — Olanta Town Council is considering raising rates for sewer usage beyond the first 1,500 gallons after Lake City's recent increase in sewer charges for the town.

Mayor Jimmy McCutcheon said during a special called meeting June 21 that the town has to pass along the 33 percent increase, which the town estimates could equal nearly $46,500 in the coming year. Council approved first reading of an ordinance for no change in the minimum charge, which applies to the first 1,500 gallons, but a $1.28 increase per additional 1,000 gallons.

The other option presented by the South Carolina Rural Water Association was to increase the minimum charge by 70 cents as well as $1.21 for each additional 1,000 gallons.

Councilman Eric Evans said he preferred the former option because it could have less of a harsh effect on smaller households, especially given the number of fixed-income residents in town.

Olanta's sewer rates are $18.50 for the first 1,500 gallons, $6.80 for the next 3,500, and $5.20 for the next 1,500.

In Lake City, the city council voted earlier this month to raise sewer rates for each 1,000 gallons beyond the first 2,500 by 88 cents a year for the coming three years. Industrial sewer rates will remain unchanged. Those rates were recommended by the South Carolina Rural Water Association.

“Our goal when we do a rate study is to be as fair to the customer as possible, but to keep the system viable as well, because if you don't, 10 years down the road, it's going to cost them,” Kevin Simpson, a circuit rider with the association, told the Olanta council on June 21.

Because the rates are increasing over the next three years in Lake City, Olanta has to plan for possible increases during the coming years, as well, McCutcheon said.

Simpson also recommended for the town to have a reserve account to deal with depreciation of equipment. McCutcheon said town leaders are hesitant to do so because they think sewer rates are already too high, which he called unfortunate.

Council also voted June 21 to approve second and final reading of the town's fiscal year 2010-11 budget. Present at the meeting were McCutcheon, Evans and councilman Tommy “Mitch” Driggers.

The budget plans for $652,818 in income and $613,794 in expenses, which would create a $39,024 surplus. It includes no tax increases, McCutcheon said.

The town plans to pay $1,500 a month in back payments to the Internal Revenue Service as well as $700 a month in ticket assessments owed to the state, McCutcheon said. At that rate, it could take the city five years to repay what it owes, he said.

The budget also includes $3,000 in salaries for the mayor and town council, as required by state law, McCutcheon said, adding that “it's up to” council members and the mayor whether they want to request payment by the end of the year.

Council also voted to set the town hall's shortened hours of operation as 8:30 a.m. to 5 p.m. from Tuesday through Thursday.

Council voted earlier this month to cut operations from five days a week to three days a week starting July 5.

Mayor Jimmy McCutcheon said earlier this month that the new schedule would save the town about $20,000. He also said the new schedule will change the town clerk position from being full time to part time, with no benefits.