Several Winnsboro area residents had called The Herald Independent and the Mayor and Council members, upset that their June utility usage was billed at the new, higher rate when the bill, dated July 1, arrived.
In a letter to the Mayor and Town Council dated July 30, 2010, Wood suggested a remedy to the concerns of some residents who felt their utility increase began before the July 1 rate increase start date.
“As per Town of Winnsboro Budget Ordinance #061510A as voted on and approved by Town Council on June 15, 2010 the mandated electric, water, sewer, and sanitation rate increases became effective as of July 1, 2010.
“This means that any billings done on or after that date will reference the new rates. As you know billing/charges are based upon usage: therefore, customers will always be charged upon usage that has already occurred (i.e. July’s billing will be for June usage).
“To have circumvented this customary procedure, Council would have needed to vote to make the new rates effective July 1, 2010 and postpone the implementation of the new rates until August 1, 2010.
“If Council decides it is in the best interests of the Town and customers to have the July billings reflect the ‘old rate’ we can accomplish this by having one month’s billings (September) charged out as the ‘old rate’ which will in effect provide a credit for the July billing (Note: Credit expense estimate: $47,329).”
Council members discussed the rate increase confusion during executive session at their regular meeting Aug. 3.
Upon return to regular session, Mayor Gaddy said that utility rate increases have always been done this way, and that there is confusion because this is one of the first times there has been billing increases that coincide with the new budget.
“But because of concerns of different citizens, and also their concerns about the amount of increases, the council has heard their concerns and heard their views and would like to address that problem as we see it,” said Gaddy. “We would like to reiterate that the way it was done this year is the way it’s always been done, but because of the tough economic times, I think people are more aware of their utility bills and scrutinized some of those a little more closely, and we appreciate them doing that, and we certainly want to be responsive to their concerns.”
“So moved,” said Council Member Danny Miller.
“The motion is that in the month of September, we will go back to the old utility rates of last year that we had for that one month,” Gaddy said. “We had to wait until September because some of the bills are already in the process of going out for August and because of the computer software, we won’t be able to do it until then. Everyone will get credit whenever they get their September billing at the old utility and garbage rate. We appreciate your concern, we heard your concerns and tried to respond to them.”
The motion was seconded by Council Member Bill Haslett and was passed unanimously.
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