Water customers steaming over increased sewer charge

LEXINGTON - Several Lexington water and sewer customers are wondering why their bills have increased recently, while those who only are hooked onto the water system want to know why they have a monthly $5 sewer charge.

City leaders say the costs are necessary to pay off a $1.3 million loan from the U.S. Department of Agriculture. The loan was used to pay for the sewer system.

"We're trying to keep the town from going bankrupt, basically," Mayor Herman Jaggers said. "It we hadn't started working with the USDA to pay off these arrears, they would have foreclosed on us and put somebody in here to work on it."

Jaggers said the loan is to be repaid over 40 years and payments amount to about $83,000 to $84,000 a year.

He said prior administrations had allowed the town to get behind on the payments.

"We've tried to catch up but haven't been able to," Jaggers said. "We've tried to work with the USDA to get caught up and have been trying to come up with a plan. They've been very good to work with us. They've been more patient than probably I'd have been if I were in their place."

He said that debt is why water customers have the monthly $5 sewer rates tacked on to their bill, and why water and sewer rates have increased.

"Your sewer never pays for itself," the mayor said. "The water department has to underwrite it."

That decision didn't sit well with some customers, many of whom are expected to attend tonight's water and sewer board meeting. The 7 p.m. meeting is at the town's senior center.

"I expect a big crowd there," Jaggers said.

Brent Davis is among those who plan to attend.

"There's been a big uproar, especially from people living outside the city limits," said Davis, who uses the town's water but not sewer, and wants to know why he must pay the monthly $5 sewer charge.

"Most people out in the county who are on the town's water have a septic tank," he said. "Personally, we don't think what they're doing is legal.

"They borrowed money from the USDA for the sewer, and I don't see how they can charge anybody for what they're not using."

Davis said some residents have discussed asking state Attorney General Troy King's office if the town's actions are legal.

"The water bill, itself, is outrageous, compared to other areas," Davis said.

He said he had long paid about $15.95 a month on his water bill, but that was increased by some $10 a couple of years ago to repair some leaks and hasn't decreased.

"That never went off, and now they've added to it," he said. "That's $31 a month for minimal use."

Davis said he has heard complaints from customers who are receiving bills of $70 to $90 a month.

"If they don't give us any satisfaction, we're going to turn it over to Troy King," Davis said.

Jaggers said he has tried to be up front with customers and even added a note to the most recent bills, explaining about the past-due loan from the USDA.

The mayor said there are about 930 customers on the system, and, like any small system, that amounts to higher costs per unit to keep it operating and pay bills.

"People have it in their minds that the money is going to the USDA, and that's not the case," he said. "The USDA is the one who financed the sewer system, and this is just paying them back."

He said if the bills aren't paid and the USDA takes over, then the federal government would decide on monthly charges, and the town would have no authority in the matter.

"They would have charged whatever it took," Jaggers said. "Once you actually go into bankruptcy, which we were headed for, it's nasty."

The mayor said the town also is dealing with issues surrounding its water supply. Those issues, which include concern over the town's water supply, have gotten the attention of the Alabama Department of Environmental Management.

"ADEM has firmly requested that we look for other sources (of water)," Jaggers said. "So, we're fixing to have to find some alternative sources to what we presently use, and all of this is going to cost a great deal of money. We're trying to get ahead of this a little bit and not borrow money for it."

Bernie Delinski can be reached at 740-5739 or bernie.delinski@timesdaily.com.