Pascagoula may be reducing the new sewer rate hike
PASCAGOULA -- The city is reconsidering its recent water- and sewer-rate hike.
It said Tuesday it may reduce increase passed along to residents and businesses, especially businesses with larger-line service.
The City Council is awaiting a recommendation from the staff.
In the meantime, Pascagoula "is encouraging residents and businesses to refrain from resizing meters until the matter has been resolved."
"If it is determined that a customer has overpaid, the city will provide a credit toward future bills," the city said in press release Tuesday. "The purpose of this release is to make the public aware of the situation as it now stands and the alternatives being considered."
It said in the coming days, the city will review data collected over the first billing cycle since the water- and sewer-rate hike went into effect last month. The results could mean a reduction in the increase.
City leaders said they may be able to lessen the hike while still generating enough money to cover the increase the Jackson County Utility Authority is charging the city to treat its sewage -- $1.8 million over the past three years.
The City Council raised the flat demand rate for water and sewage by about $21.50 a month for homeowners and about $30 for businesses, based on the size of the line.
The City Council based the higher rates on what the staff recommended to cover the JCUA cost.
But early collections indicate the increase may be generating more than the city needs.
"When we put our projections together, we underestimated how much of an impact accounts with larger meters would have on the revenue stream," City Manager Joe Huffman said. "We understand the impact of these increases and we are working to make adjustment recommendations for City Council consideration."
Anyone with questions can contact the Utility Billing Office at 938-6633.
This story was originally published March 8, 2016 at 6:32 PM with the headline "Pascagoula may be reducing the new sewer rate hike ."