
Local fire departments were recognized at the Mount Olive Town Board’s Sept. 12 session for providing mutual aid to the Mount Olive Fire Department. From left are Commissioner Vicky Darden; Indian Springs Fire Chief Phil Shivar; Pricetown Fire Chief Joey McCullen; Smith Chapel Assistant Fire Chief Mel Anderson; Oak Wolfe Chief John Daniel; Calypso Fire Chief John Davis; Dudley Fire Chief Kendall Lee; Mount Olive Fire Chief Greg Wiggins; and Mayor Kenny Talton. (Steve Herring|mountolivetribune.com)
Mount Olive water customers have been given a brief respite from a possible 7 percent increase in their water rate — town commissioners have postponed action on any increase until next month.
The water hike would increase the residential rate from $9.26 to $9.91. Any increase in the water rate also comes with an increase in the sewer rate. It also would go up 7 percent from $24.39 to $26.10
The commercial rate for both would increase by 12 percent — from $14.64 to $16.40 for water and from $34.86 to $39.04 for sewer.
And the town board has indicated more increases are anticipated.
The increase had been on the town board’s Tuesday, Sept. 12 agenda for possible approval before being tabled until the Oct. 10 session.
The unanimous decision to delay any action on the proposal came after Mayor Pro-tem Steve Wiggins wanted more information from Utility Director Jeremy King ,who was unable to attend the meeting.
“I would like to have more input from Jeremy,” Wiggins said. “I hate to suggest it, but I really think we ought to table this until the next meeting.”
Wiggins made his suggestion a motion. It was seconded by Commissioner Barbara Kornegay and unanimously approved.
It was the first time a possible increase has been discussed at a board meeting. However, commissioners have been hammering out the increase over several months during their monthly ordinance review work sessions.
Those sessions, where no votes are taken, are open to the public, but very few people attend them.
In making the presentation, Finance Director Jamie Butler said she was unsure what else commissioners wanted to hear unless they were just announcing the new rates.
Mayor Kenny Talton asked Butler to explain how much the proposed increase was.
“As it was discussed at the last ordinance meeting, that is a difference of $3.29 on an average bill of $50,” she said. “The $50 bill that I referred to is if you have no action. If you don’t have water that is a standard bill.
“Everyone in here, most likely, if you use your water, does not have a $50 water bill, but that was just on the standard bill.”
Talton wanted to know if the amount would double on a $100 water bill.
It would not, Butler responded.
The amount was based on the $50 standard because the town does not have an average bill to use for comparison, she said.
The $3.29 increase includes the water, sewer and trash, Butler added.
Talton, speaking to Town Manager Jammie Royall, said he knows the state has a hand in ensuring the town keeps its water rates current.
“If we don’t keep them current, we can be penalized in some way, shape or form,” he said. “Is that right?”
Butler and Royall both responded that is correct.
The town already is being penalized on any forthcoming grant applications because its water rates are not where they need to be, she added.
“So, therefore, if we want to continue to increase our system with grants that Commissioner Kornegay helps us with, then we have to increase the rate to show that we are doing something from the town as to opposed to always asking for money,” Butler said.
Talton noted that the town board did not increase taxes for the current year.
However, the water rate increase is one way the town can help meet state mandates, he added.
It is a small price to pay to state inline with the state and have opportunity for funding, Talton said.
“This money stays in the water-sewer budget,” Kornegay explained. “It does not go out to pay for anything else. It pays for improvements to the system which we have to do to get off the (state-imposed sewer) moratorium.”
The town is required to keep the money in that fund — it cannot be transferred to any other department for other uses, he said.
Wiggins said that if he understood correctly, then the state is requiring the increase in order for the town to receive grant funding.
Grant applications are on a point-base system, Butler responded.
“We are not at a level where we can achieve those particular points because our minimum water bill is not at a certain rate,” she said.
It does not mean that the town will not get the grants, but rather means it loses all the points from that particular component, Kornegay said.
“That could be the make-or-break decision,” she said.
Kornegay reminded Wiggins of meetings they attended where they were told towns need to continue to gradually increase water rates.
However, Mount Olive has not had an increase in about five years — so it is time, she added.
“This is not gradual,” she said. “This is really minimal of what we ought to be doing. But we just feel like we can’t go as big as we need to be.
“Really, we are taking a small step here.”
Butler said King was unable to attend the meeting, reminding commissioners of comments made during the last ordinance review session.
At that meeting it was noted that if the town wanted to avoid major breakdowns like the recent water line break in front of Roberts Machine Shop on N.C. 55, then the increase is need for funds to repair existing infrastructure, Butler said.
That break forced a town-wide water shutoff for several hours last month while repairs were made.
“We certainly don’t want that to happen again,” Talton said.
Commissioner Tommy Brown said a Rural Water representative had spoken to the board about the rates.
Her suggested rate hike was higher than the one before the board followed by progressive incremental increases, he said.
The first suggested increase was more than 10 percent, something the board did not want to do because of the hit customers would take, Butler added.
In other business, commissioner unanimously approved accepting a $200,000 planning grant through American Rescue Plan Act.
The planning will help determine projects to mitigate flooding in the town.
The board also was unanimous in awarding an $85,000 contract to Allison Platt of Goldsboro for streetscape design work for the town’s planned downtown revitalization projected.
Several local fire departments were recognized for providing mutual to the Mount Olive Fire Department.
Honored along with the Mount Olive Fire Department were: Calypso Fire Department; Oak Wolfe Fire Department; Smith Chapel Fire Department; Dudley Fire Department; Indian Springs Fire Department; and Pricetown Fire Department.
The recognition was part of a program established several years ago by Commissioner Vicky Darden to recognize community service.
Following the presentation, firefighters were treated to an appreciation meal served at the old train depot.