Pamplico Town Council OKs first reading of CPI ordinance

Members of Pamplico Town Council unanimously approved first reading of an ordinance to change and reduce the Consumer Price Index amount required for the 2009 fiscal year.

The Consumer Price Index (CPI) increased by 5.9 percent, but town officials recommend the CPI only increase by 3 percent, Mayor Gene Gainey said during a special town council meeting Monday.

The change is only applied to residential water and sewer rates.

Gainey said the change needed to be made in order to reflect the 3 percent CPI already set in the town’s budget.

The 5.9 percent CPI was higher than what was projected when completing the budget.

Gainey said he didn’t want to increase the CPI to 5.9 percent in order to save taxpayers money given the “turmoil and financial problems going on in the country.”

For a minimum water bill of 2,000 gallons at a 3 percent CPI increase, taxpayers would see their bill increased by 5 cents.

For sewer bills of 2,000 gallons, taxpayers would see their bill increase by 62 cents.

If the town went with a 5.9 percent CPI increase, water would have increased by 98 cents. Sewer would have increase by $1.21.