Representatives with Jackson Thornton Utilities will attend Tuesday’s council meeting to announce the results of a recent utility rate study. According to Mayor Johnny Hammock who is also the superintendent of utilities the city may have to consider raising wholesale water prices to other municipalities and outlying areas.
“We don’t want to raise rates, but we also can’t afford to lose money by selling water,” Mayor Hammock explained.
According to Mayor Hammock the city could be losing upward of $300,000 in wholesale water sales.
“That’s a lot of money that we could use on recreation or infrastructure,” he said.
According to Mayor Hammock, a rate study of this nature is conducted every other year. The 2018 rate study showed that the city’s utility system was losing close to $850,000 a year. The study showed that the city’s water system was functioning at $374,064 under recovery yearly to provide water to Tallassee residents.
The city’s sewer system was operating at a $503,517 deficit while the city’s gas system was breaking even.
In December 2018, the council voted to raise utility rates and began to plug the $850,000 a year loss.
“We had to raise rates, which was not the popular thing to do, but it was necessary to stop the bleeding,” Mayor Hammock said.
Mayor Hammock said he expects this recent rate study to have much better findings than the 2018 study.