LUB approves fee changes

Parker Wright news-herald.net

Loudon Utilities Board approved April 26 updates to water, sewer and electric fees.

The board was initially presented the updates at an April 12 workshop and approved a change to the customer service policy.

“We examined our fee schedule in conjunction with department heads looking at our labor costs and our accounting department material costs,” Ty Ross, utility manager, said.

“We also surveyed our surrounding utilities and our internal review justified an increase, and low and behold, surveying the surrounding utilities we saw that we were trailing them in fee schedules. This will bump up the fees to be basically in line with our surrounding jurisdictions as well as covering our costs.”

A fee change hasn’t been made “in quite a while,” he said.
Nicole Curtis, Loudon finance director and city recorder, said the new fee schedule is simplified.
“We had tap fees, and they’re reclassified now as new service connection fees,” Curtis said. “But they changed from — a water line tap inside the city limits was $400 plus the facilities charge of $250.50. That changed from $400 to $700. This more accurately captures our cost for payroll, equipment, materials to go install that, and this is where there’s a new house with no service there. This fee on the water and sewer changed. Both of them were $400 and they changed to $700 to more appropriately capture that. We are still the lowest total cost for our services than our neighbors. We’re still on the lower end of the spectrum there so that’s good to know. … There was a water line assessment charge that is no longer applicable so that went away.”
Curtis said there is now no distinction between inside and outside city limits for new taps.

Board members Bart Watson and Tim Dixon motioned and seconded, respectively, and the vote passed unanimously.

The board also unanimously approved new outdoor lighting rates.
Board members at the April 12 workshop considered decreasing the rates while switching to LED fixtures.
In other news, Loudon Utilities Board:
• Awarded a bid for a bulk sodium hypochlorite system to Design and Construction Services Inc., at $1,129,600.
• Approved a contract extension with Cintas Corporation for crew uniforms.
• Requested the city submit a Community Development Block Grant application to support the sewer system.

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5/12/21