Water rate raised

SHEFFIELD - Roughly two thirds of Sheffield Utilities' 4,700 customers will pay more for water beginning in January after City Council members unanimously approved a rate increase Monday.

Sheffield Utilities General Manager Allen Hughes said the increase is needed to offset the increased costs associated with producing water and maintaining the distribution system.

In addition to the higher cost of items such as chemicals used in the production of drinking water, Hughes said the loss of two major customers - Colbert County and the old Wise Alloys can plant - seriously cut into Sheffield Utilities' revenue.

While the rate increase means a $6-$6.50 per month increase for average water consumers, about 1,200 customers who use very little water will see their rates decrease by $1.40 per month.

Heavy water users, such as homeowners with lawn sprinkler systems, will see a higher monthly increase.

Hughes noted that both Muscle Shoals and Tuscumbia have recently approved water rate increases.

"We'll all have roughly the same minimum bill," Hughes said.

He said the minimum bill will be about $18 per month.

Hughes said the new rate will be in effect when meters are read in December and will be reflected on customers' January bills.

The majority of the additional revenue will be used for the production of water, Hughes said.

Sheffield Utilities has a bond fund that is used to pay for capital improvements. The fund has enough money for another two years, he said.

Hughes said the utility department will begin searching for leaks in the water distribution system, which will help reduce costs.

Russ Corey can be reached at 740-5738 or russ.corey@TimesDaily.com.