Gadsden water rate increase may be lower that expected

There is some good news for Gadsden water customers. The Gadsden water works and sewer board says The last of five announced water and sewer rate increases to fund $30 million in system improvements will go into effect in October may be smaller than expected. The board approved a 7 percent rate increase in 2009, 11 percent increases in 2010, 2011 and 2012, and had projected a 5 percent increase this year to pay for a $38 million bond issue. That issue included $8 million in bond refinancing to take advantage of lower rates and $30 million in new construction and upgrades at the water treatment plant and both sewage treatment plants. General Manager Frank Eskridge says a study last year indicated the final increase could perhaps be dropped to 4 percent. He is preparing a budget for the coming year and remains unsure about his recommendation to the board on the increase.