Madison Suburban Utility District, 108 W Webster St, Madison, TN 37115, US

"Our highest responsibilities are to ensure safe drinking water to our 14, 000 customers and to plan in advance so that needed services are available throughout Hendersonville. Our estimates indicate that the proposed rate increases, combined with a bond issues and loans will support system improvement needs over the next five years." Tom Atchley, HUD General Manager, October 2003For the first time in more than 12 years, the Hendersonville Utility District has adopted a water and sewer rate increase to become effective in all bills issued after January 1, 2004. -The new rates will amount to an approximate 14 percent overall increase in the combined water and sewer monthly bill, or $4.60 increase per month, for an average homeowner using 5, 500 gallons of water.During $18 Million Improvement Program: The Hendersonville Utility District is proud to have been able to hold steady rates for well over a decade while completing more than $18 million in water and sewer system improvements during the last five years. However, the cost of ensuring safe drinking water and reliable sewer services continues to climb, and additional system improvements totaling more than $16 million are needed, prompting the need for additional fundsUnder the proposed rates, an average residential customer using 5, 500 gallons of water per month will see a combined monthly water and sewer bill totaling $37.89 versus $33.29 under existing rates a difference of $4.60. The 1400 White House Utility District customers who receive HUD sewer service will see a 10 percent sewer rate increase. Both HUD and WHUD sewer customers will be charged $1.10 per 1, 000 gallons on their monthly bills under the proposed rates, in order to recover a user charge from the Metro Water Services.Several factors contribute to the proposed rate changes, including increasingly stringent water quality standards, new security measures brought on by legislation following the events of 9/11, and the overall need to improve aging water and sewer facilities throughout the District. The fees will also support a portion of the District's Capital Improvement Plan that calls for $16 million in facility improvements and expansions during the next six years. This includes installing sewer services in the Lakeview area and in unsewered areas within the Indian Lake peninsula.-Tap Fee Decrease For Public Buildings: As part of considering the water and sewer rate increases, the HUD Board of Commissioners also approved a tap fee decrease for public buildings, which includes churches, schools and government buildings.The Board also approved increased tap fees for new connections to the water and sewer systems, and established capacity fees of between $500 and $1, 500 for new developments in order to offset the increased costs of water and sewer system improvements and additional sewer treatment capacity needs brought on by increased demands.Sound financial management by the Board of Commissioners and staff has not only allowed the District to hold steady rates for more than 12 years while constructing $18 million in system expansions and improvements, but has also earned an upgraded bond rate of A1 from Moody's Investment Services, making HUD one of only a few utilities in Tennessee to achieve this top rating.Tom Atchley, HUD General Manager Hendersonville Utility District 615-824-3717