Pelham council approves water rate increases

PELHAM – The Pelham City Council approved water rate increases for the next two years at a meeting held at City Hall on Monday, Feb. 20, at 7 p.m.

The Pelham City Council has expressed that water rate increases are needed to combat wholesale water rate increases from Shelby County.

“We are now paying more for water than we are selling it for,” said City Council President Rick Hayes.

The new rates take effect on March 1. The new water rate for those inside the city limits will change to $14 per month for 0-3,000 gallons of water, and 3.63 per thousand gallons thereafter.

For those outside of the city limits, the new rate is $16.50 per month for 0-3,000 gallons of water, and $4.18 per thousand gallons thereafter.

Effective March 1, 2018, the base rates and prorated per gallon rates for customers inside and outside of the city limits will be adjusted. For those inside of the city limits, the rate will increase to $15 per month for 0-3,000 gallons and $3.88 per thousand gallons thereafter.

For those outside of the city limits, the rate will be $17.75 for 0-3,000 gallons and 4.47 per thousand gallons thereafter.

Effective March 1, 2019, the rate will increase to $16 per month for 0-3,000 gallons and $4.16 per thousand gallons thereafter for customers inside the city limits. The rate for customers outside of the city limits will be $19 per month for 0-3,000 gallons and $4.79 per thousand gallons thereafter.

Any household whose sole source of income is Social Security Benefits or Social Security Disability Benefits will receive a fixed rate of $5.60 for the first 0-3,000 gallons and $2 per thousand gallons thereafter. Such residents will have to provide proof of their income to the City Clerk to receive this rate.

Nineteen percent of the city’s Public Works customers reside outside of the city limits, while 81 percent of customers live within the city limits.

Shelby County started increasing their wholesale water rates after passing a resolution in 2008 to implement five increases between 2008 and 2012. Another resolution was passed in 2014 to increase the wholesale rate by 7 percent every year until 2018. About 35 percent of the city’s water is purchased from Shelby County.

This is the first time the city of Pelham has increased water rates since 2014.