Forsyth water rates leap as demand sinks

Forsyth County water customers are facing another major rate increase, in part because they did what they were told: they conserved.

Two forces were pushing this affluent north Atlanta suburb known for high-end homes and manicured lawns to cut back. State drought restrictions severely limited when residents could water. The county also established new water rates in 2006 that were designed to force big users to conserve.

In addition, the slowdown in home building has meant fewer lawns being sodded and watered and fewer tap fees for the county to collect.

The combination caused water demand to fall dramatically, said Tim Perkins, director of the county’s water and sewer department.

“We were banking on selling water to cover our fixed costs,” Perkins said. “We put off raising rates as long as possible.”

Daily water consumption among non-senior citizens was down an average of 38.6 percent in August 2008, compared to August 2006.

Among seniors, the drop was an even bigger 44.7 percent, according to figures provided by the county.

That has prompted the call for sizable rate increases, which are expected to be effective with February bills.

The rates vary, depending on usage. For example, customers who use 1,001 to 2,000 gallons a month will see a $3.40, or 28.3 percent, increase in their bill, from $12 to $15.40.

Customers who use between 2,001 and 3,000 gallons will be paying $18.80 a month, compared with $12. That’s a 56.7 percent increase.

The smallest water users — those who require 1,000 gallons or less a month — won’t see an increase. That’s about 6,086 of the county’s 43,000 customers.

Q: How much money will this raise and why is it needed?

Perkins: The county Water and Sewer fund is facing a deficit of $5.001 million in operating funds for fiscal year 2009, if the current rates remain the same.

Q: How big is the problem?

A: The need for the rate increase was based on the fund underperforming for the last two years. In fiscal year 2007 (ending Dec. 31, 2007), this fund lost $6.4 million, not including debt service. It is projected that for fiscal year 2008 (ending Dec. 31), the fund will lose $10.7 million, not including debt service.

Q: Are sewer rates affected?

A: Yes, a flat $10 charge will be added to all residential sewer bills, $20 to commercial bills. Among non-seniors, the average sewer bill is now $22.93 and will increase to $32.93. The sewer bill for seniors goes from an average of $17 a month, to $27 a month.

Q: When are these rates to be adopted?

A: Commissioners were expected to approve the rates Thursday, but postponed the vote until January. They plan to hold a public hearing at 5 p.m. on Jan. 8.

Q: How long are these rates expected to be in place?

A: The proposed rates are considered interim while a rate study is being conducted. Results of the study will determine the need to consider further adjustments.

Q: Where does the county rank in terms of its rate?

A: Among counties in metro Atlanta, Forsyth has the fourth-highest rate behind Coweta, Hall and Cherokee, according to a survey by the Metropolitan North Georgia Water Planning District.