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Consultant Says Higher Utility Rates Needed

Fairhope, Alabama    James Marshall, CPA Revenue distribution.   TO KEEP UP WITH GROWTH During a presentation at the council's last work session, James Marshall of the Jackson Thornton accounting firm of Montgomery who was hired by the city council for a utility rate study said that city utilities as a whole are currently recovering only 82 cents on every dollar being spent (for capital improvements, debt service, operations/maintenance, transfers to general fund). According to the study, the sewer department needs an $8 per-customer increase to its base monthly charge -- and another $3 per every thousand gallons used. Similarly the study found the water department needed and additional $1.50/month increase to its basic monthly charge -- and a $2 per thousand-gallon-used volumetric hike as well (inside city limits) -- plus a 2-step $1 volumetric hike for outside city limits. These increases would bring water and sewer services up to 90% of projected revenue needs for the next five

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