Why would the Signal Mountain Town Council not want to request a professional rate study before increasing our water rates?
At the Aug. 25 work session, Mayor Howley recommended that the town increase water rates now rather than wait a couple of months for the Municipal Technical Advisory Service to conduct a formal rate study. He argued that the projections he presented for a rate increase schedule were adequate.
Councilmember Dan Landrum pointed out that the numbers Mayor Howley presented were based on the incorrect premise that the $3 million cost for line replacement and other improvements would be spent all at once. Mr. Landrum went on to point out that, in fact, the town’s water department has a plan that schedules the improvements out over a 21-year period.
A professional MTAS rate study would provide the town with recommendations from professionals with technical expertise in public utility financial structures and water system infrastructure. The study would incorporate data points such as the 21-Year Plan and improvements that have already been made, which are missing from the current projections that Mayor Howley wants to rely on.
Councilmembers, I ask that you do your due diligence and say, “yes”, to an MTAS rate study.
Annette Allen