Monday November 10, 2008
SOUTH BLOUNT UTILITY DISTRICT ANNOUNCES RATE INCREASE
Blount County, TN (November 5, 2008) - Water customers of South Blount County Utility District (SBCUD) will see a 7.5% rate increase in their January 2009 bills. The result is an estimated $2.50 increase to the average customer's bill each month.
The rate increase decision was unanimously approved by the utility's three-member commission during its monthly board meeting held November 4th. "Our district's leadership has been working hard to remain fiscally solvent at a time when the cost of living has gone from 2.5% earlier this year to 5.8% today," says District Manager, Henry Durant. "The water plant's electricity bill increased an additional 20% in just one month, record fuel prices throughout the summer, and a tremendous drop in revenue generated from tap fees in our district are also contributing factors," adds Durant.
The district's labor costs remain the same, as no raises have been given to its employees nor has there been any additional cost associated with employee benefits. Durant says this increase is directly attributed to the rising cost of living. "Understandably our customers are feeling the same financial hardship as they manage their monthly budgets, and we regret that this news may add additional strain on them. Our district has spent countless hours carefully trimming excess from our operating budget, but we were still not generating enough revenue to cover our operating costs," says Durant.
The district is currently in negotiations for a municipal bond to refinance its debt and lower its debt services. "If we are able to secure a 30-year bond it will provide us with a lower our monthly expenses and give us and our customers some breathing room to work with in the coming year," adds Durant.
If customers have any further questions or comments please visit or write to SBUCD at 808 W. Lamar Alexander Parkway, Maryville, TN 37801 or email us at info@southblountutility.org.
For 50 years South Blount Utility District has continued to provide Blount County with the best quality of water possible. Where else can you get 1 gallon of a product delivered to your home for less than .01 cent. South Blount Utility has provided a service that has only had an increase of .22 cents a year in a 50 year time span.