Thursday, August 18, 2011
Utility Board Renews Summertown Water Contract
Members of the Lawrenceburg Utility Board initiated Thursday the process of adding a clause to contracts with area Water Districts that will allow them to share in any future rate increases.
During a Thursday morning meeting board members discussed the renewal of a water purchase contract with the Summertown Water District, which expired in July.
Under the terms of the contract, the district, when needed, may purchase water from Lawrenceburg Utility Systems at a cost of $2.00 per 1,000 gallons. Other area water districts are currently operating under the same contract.
Since local water districts have purchased little water in past months, some members expressed their reluctance to implement a cost increase.
The sale of water to water districts is one source of income, and the lack of purchases this year has caused a decrease in revenue for the system.
The board opted to maintain the existing price, but to add a clause indicating that, should a residential water rate increase be implemented in the future, the increase will apply to purchases by the Summertown Water District, as well.
Members indicated that this clause can be added to contracts with the other water districts as their contracts come up for renewal.
Also during the meeting, long time board member Paul Bates announced his intent to retire from the board before the end of the year.
