By Shannon McFarlin WENK/WTPR News Director
Paris, Tenn.—At a busy session Tuesday morning, the Paris Board of Public Utilities (BPU) approved an already-planned rate increase and in three separate motions involving improvements to the utility’s wastewater system, approved sending a bond resolution for $11,914,000 to the Paris city commission for its approval.
The city commission already has set a special session for 10 a.m. Wednesday at city hall to act on the resolutions.
The rate increase will be effective October 1 and has been discussed publicly at length. The increase will be the second of two anticipated electric rate increases in the BPU five-year plan. General Manager Terry Wimberley explained to the board the increase will mean a flat $1.75 monthly increase to the Service Availability Charge for residential and small general services customers. The increase amounts to $21 a year, he said.
Wimberley said compared with other area utility companies, the increase “is still quite modest, especially when you look at our neighbors”. The increase was approved last year. “This is the amount of revenue” needed for the BPU’s planned programs and improvements over the next five years, Wimberley said.
After this increase, no rate boosts are anticipated for electric services over the next three years.
As for the USDA resolution, Wimberley said a grant in the amount of $2.2 M will help the BPU complete the project without more debt.
Wimberley said the USDA loan funds will help BPU address aging infrastructure in the wastewater collection system and the Wastewater Treatment plan—which also has been discussed at length at prior meetings.
Director of Water and Wastewater Tony Brown said this also will include improvement projects for the Jones Bend Rd. and Clifty Creek areas.
In other business:
–The board began reviewing the proposed budgets for Fiscal 2020 in the electric, water and wastewater departments. Wimberley thanked the staff for its hard work and noted having a five-year plan in place for the BPU helps in the budgeting process. He told the board, “I appreciate your foresight in seeing the needs down the road.”
The budgets show a projected net income of $694,135 for the electric department, $324,500 for the water department and $148,900 for the wastewater department. Included in the budget are the electric rate increase approved at the beginning of the meeting and a water rate increase, which will be the last of five; and a wastewater increase, which will be the fourth of five. They also were approved in prior meetings.
Also included in the budget is a 1.9% cost of living raise for employees.
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