FLOWERY BRANCH - As of Wednesday The City of Flowery Branch no longer requires an automatic 20 percent water and sewer rate increase to meet facilities improvement bond financing.
City Manager Bill Andrew told City Council the 20 percent hike is no longer necessary. Council voted to repeal it as an instrument for meeting the bond payment.
"The bond agreement requires us to meet our bond payment by 115 percent of the revenue that's required to make that payment," Andrew said. "It was calculated internally that by raising rates 20 percent per year for five years we would reach that and we have."
"There's no longer a need for having that 20 percent looming as part of our discussions coming up in a month or so about water or sewer rates."
Andrew said the city has paid its bond obligation and also set aside $150,000 for a sinking fund as a reserve account.
"We certainly don't want to see these large jumps in water and sewer bills anymore," Andrew added.
Friday
October 18th, 2024
6:24PM
