Ordinance updates development fees for water, sewer services

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By Bill Short

flag-city-logo-150x150-3381778The Millington Board of Mayor and Aldermen has passed an ordinance on final reading that updates the fees charged to operate the city’s water and sewer systems.

Board members took the action during their June 10 regular monthly meeting on a motion offered by Alderman Al Bell and seconded by Alderman Don Lowry. The motion was passed by six affirmative votes, with Alderman Thomas McGhee absent.

The ordinance was unanimously passed on first reading at the board’s May 13 meeting.

Millington’s Charter authorizes the board to impose charges to cover the costs of operating the water and sewer systems, and Tennessee law requires that the costs be covered separately for each system.

The city charges fees to cover the administrative and service costs in the development of property. But the board has determined that the fees, which have been in place for more than a decade, are “inadequate” to cover those costs.

The ordinance repeals and replaces Subsections 107-109 of Title 18 of the Municipal Code.

It establishes a sewer development charge to defray part of the construction costs of sewer “outfalls” and extensions.

The charge will be paid by the applicant or the developer of a subdivision, industrial, commercial or residential site: (1) upon the execution of the contract for the subdivision or sewer extension; or (2) at the time of application for the sewer connection or plumbing permit.

The sewer development charge will be the greater of $3,000 an acre or $1,200 for each connection made to the main sewer line or any lateral lines of the North Fork Creek sewer outfall line.

For all other connections – residential, industrial, multi-dwelling or commercial – the charge will be the greater of $1,250 an acre or $500 for each connection.

The sewer connection charge will be $500 for any lot with service lines available. For a lot without available lines, the charge will be the actual cost of connection as determined by the city’s Sewer Department.

A water development charge will be the greater of $3,000 an acre or $1,200 for each connection made to the main water line or any lateral lines of the North Fork Creek water line.

For all connections with service lines from the main water line to the lot, a water connection charge will be $500, plus the actual cost of the meter as determined by the Water Department. The charge will include the meter’s cost for all established lots without service lines.

City Finance Director John Trusty acknowledged that, for the North Fork Creek area, the ordinance is basically a “restatement” of existing policies.

“We have not changed anything with the sewer connection charges,” he noted. “But we have clarified the rates, so they’re consistent across all levels of service.”

Trusty said the old water connection charge was $500, which included the cost of the meter. But because it currently costs that much just for the “labor and supplies” to install the meter, the new fee will be $500 plus the meter’s cost.

The ordinance will be effective for subdivision contracts or other connection requests received after June 10.

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