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Stop the DeKalb Utility District Water Plant

Petition published by DeKalbCitizens4ReasonableWaterRates on Apr 25, 2012
226 Signatures 
Target: The DeKalb Utility District

Petition Background (Preamble):

The DeKalb Utility District (DUD) is considering building a new intake and water treatment plant, at a cost of at least $11,000,000. This project is unneeded and will immediately raise the water rates for DUD customers by 50% according to their own calculations.

If the DUD's overly-optimistic projections of 3% compounded growth fall short, further increases will follow. Smithville may be forced to raise their rates for their customers as well.

* The DUD says they will only raise rates by $10/month for the average customer. But the math doesn’t add up. USDA Rural Development says the rates will go up by at least 31%. The interest on the $10 million dollar loan will force us to pay more.

* "This proposal proposes to increase the water rates to their (DUD) customers by fifty percent…..(Smithville) customers will have to absorb a ten, fifteen, twenty percent increase.” (J.R. Wauford, Utility Engineer, 4/16/12)

* The DUD buys water from Smithville at $2.00/1000 gallons, and sells it for $19.00/2000 gallons (as of July 2012).

* Smithville is only using roughly 45% of it’s capacity. They could double their users and support new industries and still have capacity.

* Smithville just spent $3 million to upgrade their water treatment system.

* Smithville has award-winning water as judged by the TN Assn. Utility Districts.

* The DUD cannot account for 84,590,673 gallons of water last year, losing 27.461% of the water they purchased.

* Now the DUD wants permission to pull 3,000,000 more gallons of water out of Center Hill Lake every day?

* In the DUD’s most recent audit identified a “deficiency in internal control” and recommends “the District strengthen its internal control in cash receipts, cash disbursements, and reconciliation of cash.” (John Poole, CPA, audit report, July 31, 2011)

* The bond financing for the loans has already been decided - before being voted on - with a no-bid contract with Wiley Brothers.

Petition:

We, the undersigned, respectfully request the DeKalb Utility District (DUD) forgo their plans to build a water intake and treatment plant and negotiate a new contract with Smithville.

Doing so would ensure NOBODY would be required to pay higher water rates due to the construction of an unneeded water treatment plant.

The Stop the DeKalb Utility District Water Plant petition to The DeKalb Utility District was written by DeKalbCitizens4ReasonableWaterRates and is in the category City & Town Planning at GoPetition. Contact author here. Petition tags: ,

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