The Monterey Board of Aldermen approved a water and sewer rate increase Monday night to address a budget deficit and rising production costs.
Vice Mayor Kevin Peters said the town currently faces a deficit of approximately $900,000 following the departure of the Perdue chicken plant. Peters said the town has not implemented a rate increase since 2021 and must act now to remain solvent. Peters said he expects another increase next year, albeit not as big.
“We’ve got to be profitable or the state will come in and they’ll set the rates and they’ll set it, you know, at enough for all the depreciation and everything down the road,” Peters said. “I think we’re on the right track. I think we’re going to make some headway this year.”
Peters said it currently costs the town $6.68 per thousand gallons to produce water when accounting for depreciation, chemicals and labor. He said the town had been selling that water for $5.80 per thousand gallons, resulting in a loss on every gallon sold.
“We were losing a lot of money from Perdue when they went out, so we’re having to try to absorb some of that,” Peters said. “And we had to go up outside the city a little higher, and the utility districts and the commercial rates took a bigger hit.”
Peters said the new schedule increases water and sewer rates by $3.75 per thousand gallons for customers outside the city, while also lowering the minimum usage threshold. Peters said the minimum billing standard will drop from 2,000 gallons to 1,000 gallons, after which customers will pay the per-thousand-gallon rate.
“There’ll probably be a little bit of increase next year, but not near what it was this year,” Peters said. “We’re, we’re hoping it’s probably about three or four dollars, you know, per household.”
In other business, the board also approved a resolution establishing formal policies and procedures for a $540,000 housing rehabilitation grant. Consultant Amanda Mainord said the funding will be used for the replacement of dilapidated homes or improvements for residents in need of roofs, gutters and electrical repairs.
The board also voted to purchase a rebuilt pump for the water plant at a cost of $10,382.88 and authorized the purchase of three airpacks for the fire department using a 100 percent state grant totaling $35,400.
Additionally, Alderman Jamie Phillips introduced a motion to move Johnathan Phillips, no relation, to a full-time position at the water plant. Johnathan Phillips said he is working as an assistant to the cultural administrator and an operator at at the water plant. The motion was denied with Jamie Phillips and Spencer Dale as the lone “yes” votes.
“I think regardless we’ve got to have the water plant running,” Phillips said.”It’s just it’s not fair to Jonathan the way it’s set up. He’s being his pay he’s being paid a lesser rate of pay than the job he’s doing.”
Jonathan Phillips said while he is honored to work at the water plant and serve the town that he is deeply rooted in, he was disappointed in the decision.
“I think we were waiting to see what happened with the city manager,” Garcia said.
The board also approved a resolution ratifying the Putnam County Urban Growth Plan, which updates urban growth boundaries for the first time since 2000. Putnam County Planning Director Kevin Rush said the amendment process began in April of last year to resolve issues where property owners wanted to annex land that sat outside the previous growth boundary.
“This just changes the for the people who want to be in the city we can potentially get them in a little bit quicker,” Rush said. “It does not mean that anything within the urban growth boundary would be annexed. It is not saying anything will be annexed today, next month or 20 years from now.”