Water, sewer rates to jump

MUSCLE SHOALS - Environmental compliance mandates and steady growth in the city have led utilities board members to move forward with the expansion of wastewater and water treatment facilities in Muscle Shoals.

The combined $23 million project will result in rate increases for Muscle Shoals residents, officials say.

Starting in November, residents will see a combined $8 monthly increase on their water and sewer bills, according to James Vance, utilities manager. Additional rate increases will be phased in during the next six years to help pay for the projects.

Vance said rate hikes are not welcome news for anyone, but he said improvements to the systems are important to the growth of Muscle Shoals and necessary to meet state Department of Environmental Management and other requirements.

"We want customers to know it is for their benefit," Vance said. "These are major projects."

He said even with the increases, Muscle Shoals' projected rates for 2014 would not be as high as current rates in many Alabama cities. He said all cities will likely see increases during the next few years as they come into compliance with new environmental regulations.

Vance said both the wastewater and water plants in Muscle Shoals have reached capacity, which would cause problems for future commercial and residential growth if something isn't done soon. In addition, the city's utilities board could face fines from ADEM should it not comply with a consent order requiring the board to reduce the amount of ammonia it uses in treating wastewater by 2012.

The order was issued in 2007, and Vance has been dealing with finding a prompt solution.

Other regulations are forthcoming for the water treatment plant, Vance said. He added, for instance, that water treatment plants must have a backup power source on line by December 2010, which would keep drinking water flowing during emergency situations.

The wastewater treatment plant now handles 2 million gallons of water per day, but Vance said expansion will allow the plant to double that capacity.

"This project should meet our needs for a minimum of 20 years," Vance said.

He said the system's last major renovation was done more than 20 years ago. The wastewater treatment plant is on Second Street, west of Wilson Dam Road.

As part of the project, board officials plan to redirect the treated wastewater to the Tennessee River instead of using Pond Creek.

The Environmental Protection Agency has classified Pond Creek as an environmentally sensitive body of water. Vance said continuing to use the creek would place greater regulatory responsibility on the utilities board.

Mayor David Bradford said he fears that if the water and sewer systems remain unchanged, growth in the city could be jeopardized.

"I understand there is a need for them to upgrade both in capacity and technology," Bradford said. "It will be very difficult, if not impossible, to have future growth if they aren't able to expand."

The utilities operation is controlled by a board of directors and is a separate entity from the city.

John Savage, who has served as a utilities board member for more than 20 years, said this is the first time the board has been under a consent order. He said the projects are necessary, and he remains confident the plan will meet ADEM requirements.

"We have all of our plans being drawn and finalized," he said. "We're proceeding as planned. (When completed), it will get us to better than the levels they are requiring."

The water plant, which is not under a consent order, treats 6 million gallons of water per day and will be able to treat 9 million gallons per day once the expansion is finished.

Vance said the plant will switch to a modern process that will further improve the quality of the city's drinking water by minimizing disinfectant byproducts. Also, the board plans to upgrade the plant's electrical system to use generators and other equipment during emergencies.

The board, which recently earned an AA bond rating, will have to borrow money to complete the projects. The increased rates will be needed to repay the bond and help offset increased operation expenses that are tied to greater fuel costs and more expensive chemicals that are used in the treatment process.

The utilities board serves about 6,750 customers, with 1,000 of those being commercial users.