Officials report a number of external forces have led to financial woes for the city of Georgetown’s water system. Inflation has doubled the price of chemicals needed to treat water and the unanticipated interest hike over the last couple years has put the system in a tight spot. On top of that, two mistakes by outside firms cost the city more than $50 million.
Georgetown Mayor Tom Prather said the city worked with these firms before and vetted each to prove their qualifications.
“That they have a history and the capacity to do the level of work that we expect. We do that quality check first, before we even negotiate price. So, we’re stunned that this happened and regret very much the impact on our rate payers,” said Prather.
The city council is considering a 61 percent rate increase for water customers.
Prather said the city is pursuing litigation against the two firms in hopes of recouping some of those losses. However, the mayor said those funds would not be passed on to customers in the form of rebates or rate decreases, as the city has identified an additional $80 million worth of projects the water system requires.
Mayor Prather said the city is working on plans to set aside money from the general fund to help people meet the proposed rate.
“There are some on a fixed income, senior citizens, that will have a very difficult time responding to this rate increase. And I think there will be an effort to set up some assistance fund for those who are just terribly impacted by this increase,” said Prather.
Council could decide on the rate increase at the next city council meeting, 6 p.m. December 12 at the Georgetown Scott County Public Library. If approved, a 39 percent increase would go into effect January 1, with the remaining increase phased in the following year.
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