By Sarah Richardson
The City of Lewisburg and all municipal water customers will soon be benefiting from a massively updated system that will include larger water tanks, some larger water lines, the relocation of the water intake pipe to further upstream, and distribution system work.
The municipal water plant at Caldwell currently has to pump water for roughly 22 hours per day, seven days a week to keep up with demand. As people move to the area, they have simply run out of hours in the day for pumping. Most water plants pump for roughly eight to 10 hours a day and save the water that’s been gathered, which comes in handy when there are extenuating circumstances such as muddy water, as Lewisburg saw earlier this year. With our water plant operating 24/7, it’s hard to shut down when needed, whether it be for maintenance or other issues.
“It’s very important that we have a plant that can handle this volume,” said Lewisburg Mayor Beverly White. “This has been a long time coming. I remember being on Lewisburg City Council 15 years ago when we first started to discuss this.”
The final total for the massive, and necessary, project comes in at $63.4 million.
“We have approximately $23 million of that in grant funding,” explained City Manager Misty Hill. “It is the largest USDA funded project in the state. It’s amazing.”
She went on to explain that while the plant is pumping 22 hours each day, they also have “no storage capacity. This upgrade gives us storage capacity in case there is an outage, like something that happens with the river where we are not able to pump and have to turn it off. In the past when we’ve had turbidity and issues with the water, we weren’t able to be like Alderson, for example, and shut our plant down. This will give us storage capacity, and the capacity to only have to pump that eight to 10 hours.” A new backup generator also insures that in case of a power outage the pumps will continue functioning.
One water rate increase has already been implemented to help cover costs of the project, and a second increase is on the horizon.
A document sent to water customers earlier this year states: “On May 21, 2019, the City enacted a water rate ordinance that included Phase 1 and Phase 2 increases to the City’s water rates and charges. The Phase 1 increase to the City’s water rates and charges went into effect on January 15, 2020. The Phase 2 increase to the City’s water rates and charges are set to go into effect upon substantial completion of the Project or four months prior to initiation of the debt service associated with the Project, whichever occurs first.”
However, after receiving initial construction bids, the costs came in at a higher price point than anticipated. “To proceed with the project and to pay the increased construction costs, the City plans to borrow additional funds, which requires the City to increase the Phase 2 water rates and charges that it previously approved.”
John Stump, who specializes in municipal bonds, project finance, economic development, and utility regulation, is the city’s legal council for the project, and explained that “bids came in substantially over the anticipated budget.” However, he said that the amount of grant money that Lewisburg has secured is “truly, truly an incredible outcome for the city. It’s unlike anything I’ve ever seen.”
“One very important point to make is that no one wants to raise water rates, no one’s excited to raise water rates, but the $6 million in additional borrowing that the city is undertaking as part of this project, and thus raising rates, is delivering that [initial] $17 million in grant funds, in my opinion, because it demonstrated to all the funding agencies that the city was fully committed to this project.”
A public hearing on the Water Rate Ordinance was held during the May 17, 2022 Lewisburg City Council meeting where residents could voice their concerns, with several people stating that rate increases hurt senior citizens who live on fixed incomes, and others criticizing the city’s 1,000 gallon minimum usage fee, stating it discourages water conservation and hurts the environment.
Stump responded that he hasn’t seen such a low minimum usage fee anywhere else in the state, as he explained most municipalities have a 2,000 gallon minimum usage fee. “2,000 gallons is very typical, sometimes it’s a higher number, and frankly it’s based on the fact of the capital expense it takes to get water to somebody’s property line.”
“The City does not plan to increase the resale rate above the amount established in the May 21, 2019 water rate ordinance (i.e., $3.48 per 1,000 gallons),” states the document received by water customers.
A graph in the document outlines the estimated “monthly average bill” for the various classes of water customers. The difference between the previously approved Phase 2 Rates and the currently proposed Phase 2 rates is 7.43 percent higher. For example:
- Residential (2,875 gallons): Previously Approved Phase 2 Rates – $43.33. Proposed Phase 2 Rates – $46.55. ($3.22 increase)
- Commercial (13,547 gallons): Previously Approved Phase 2 Rates – $204.15. Proposed Phase 2 Rates – $219.33. ($15.16 increase)
- Industrial (32,699 gallons): Previously Approved Phase 2 Rates – $492.77. Proposed Phase 2 Rates – 529.40. ($36.63 increase)
- Public Authority (5,743 gallons): Previously Approved Phase 2 Rates – $86.55. Proposed Phase 2 Rates – $92.98. ($6.43 increase)
- Resale (5,630,420 gallons): Previously Approved Phase 2 Rates – $19,592.55. Proposed Phase 2 Rates – $19,592.55. (No increase)
A tentative ground-breaking for the project is currently anticipated for either this month or next.
“We are grateful and very appreciative for everyone who has worked hard on this project,” said Hill. “We are excited to get these much-needed upgrades.”
