City water customers will see a slight increase in their water bills beginning with the early November billing cycle after Albany City Council reluctantly approved a rate adjustment during two special call meetings last week.

Meeting Wednesday evening and Friday morning, September 14 and 16, the council approved a base rate increase of .52 cents per month for the first 2,000 gallons of water consumed for both city and county water users. There are also slight increases for each 1,000 gallons used above the base amount. (A complete listing of rates per gallons used can be found in the city ordinance on the legal page of this week’s edition.)

The council approved the ordinance on first and second readings on the above dates, with a lengthy discussion taking place at the first session last Wednesday with five of six council members present.

When the issue was brought before the council by Mayor Nicky Smith, it was noted there was a big difference between the amount of water processed and the amount paid for.

Lanny Bowlin, who works with the water department in the treatment process, did say there was a lot of gallons lost each month due to water line breaks and leaks. However, he said the amount of water loss over the past few years had decreased from over 40 percent to only around 18 to 19 percent currently. The city has about 600 miles of water lines to maintain.

Councilman James “Smitty” Smith questioned whether or not the water department was operating in the red and if it wasn’t, would there be any need to lay off any employees. The mayor said it wasn’t in the red, however, he said the city has to look into the future.

City Clerk Melissa Smith also said that last November, the water department had a fund balance of $8,962. But, at times there have been as little as $300 left after some months after all expenses are incurred and added the average electric bills for the water plant alone had gone from an average of $29,000 in 2007 to around $42,000 this year.

The last time the city raised water rates on customers was back in 1999 when a .48 cent base rate increase was imposed, primarily to help fund upgrades to the water and sewer system, as well as installing new water lines in many areas of the city and county.

Mayor Smith said he didn’t think most people realized the costs associated with operating a water system and Bowlin, also a former council member and Mayor of Albany added that the water department “was a business” and needed to be run as such. “If we don’t charge, we can’t provide the service,” he said.

Councilman Smith and other members voiced concern about the elderly residents and those on fixed incomes being able to pay an increase in rates and said everything else, such as gas, electric, etc. was also going up. “I don’t want to see rates go up…or lay anyone off,” he said.

The mayor told council members that if five employees were laid off, it would amount to around $77,000 annually, which would about cover the cost of the proposed increase. However, no council member was in favor of having to lay off any worker. “It would be harder on everyone with less personnel,” Smith said, adding, “I wouldn’t recommend an increase if I didn’t need to.”

“I don’t want to see anyone lose their job and I’m not totally against (the rate) increase,” stated councilman Tony Delk. He added, though, that there’s going to be “people out there that don’t like it.” Delk also said what worried him was people on fixed incomes.

It was also stated at the meeting that people on fixed incomes also had to pay higher electric bills and other utility related expenses and that among utilities, water was the cheapest one there was that is a necessity.

Councilman Frankie Stockton said the rates would also affect business owners and farmers as well.

During the discussion, it was also noted that city employees did not receive a pay raise this year due to the economy and also that lay-offs would hurt the water service, making for slower hook-ups, repairing of water line breaks and leaks with less employees to do the work.

Following the discussion and more that just a little hesitation on all council members’ parts, Councilman Delk eventually made the motion to approve the rate adjustment ordinance on first reading, which was seconded by Councilman Stockton and passed unanimously.

On second reading last Friday morning, there was little discussion, as Councilman Smith moved to approve final reading, which was seconded by Councilman Steve Lawson and also passed 5-0 with one council member being absent.

Also at last Wednesdays meeting, the council voted to award Sparks Insurance of Albany, the current city insurance carrier, the property insurance bid.

Sparks, who offers EMC coverage on city property, including structures, vehicles, etc., had submitted a bid of $62,455 on an estimated total property worth of $23.1 million. The other proposal was submitted by Davis and Associates, also of Albany, in the amount of $65,924 on an estimated property worth of $28.2 million.

Mike Davis of Davis and Associates noted that some coverage in his proposal carried up to $4 million in pay out. However, Councilman Smith questioned if the city actually needed that much extra coverage.

Councilman Delk noted the city has had coverage with both agencies in the past and both offered good insurance, but added it would be hard to accept the higher quote ($3,469 difference) from Davis with the city trying to save money.

City legal advisor Norb Sohm also recommended from a legal stand point that the city accept the low bid unless they had a legitimate reason not to.

Following some discussion, councilwoman Tonya Thrasher made a motion to accept the low bid from Sparks Insurance, which passed by unanimous vote.

The council also set the first annual “City Clean-Up Day” for Saturday, October 1 and more details on that event will be published next week.