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Fremont considers differential sewer rate

By Sarah A. Wise
NL Staff Writer
28 June 2007 — After discussing implementing a differential rate for out-of-town sewer customers at last week’s town board meeting, the Fremont aldermen examined a proposed plan this week, but made no final decision.

Town Manager Kerry McDuffie told the aldermen that it is rare to find municipalities that provide sewer services to customers outside of the city limits. However, most municipalities that do provide such services charge a higher rate for out-of-town customers.

In addition to the 677 customers that the town provides sewer services to inside of town, it also serves 9 facilities through a forcemain to Goldsboro and the town of Eureka. Customers in town and on the forcemain pay a base rate of $17.50, and a charge per thousand gallons. Eureka simply pays a per thousand gallon rate to pump their sewer to Goldsboro via Fremont.

Mr. McDuffie proposed to the board that they increase the per thousand gallon rate for customers on the forcemain, which would allow the in-town rate to be decreased in order to provide the same net income in the town’s sewer fund.

He proposed that customers on the forcemain, which includes two schools as well as several group homes and the airport, be raised from $8.54 per thousand gallons to $15.50.

This increase would allow the town to give in-town sewer customers a nine percent drop on their sewer rate. The in-town charge per thousand gallons could go from $8.54 to $7.75.

Alderman W.T. Smith said he agreed with the general idea of creating a differential rate, but worried that such a large increase for out-of-town customers would hurt future development for the town.

“It sounds like a good idea,” he said, “but if we have a new business that wants to come here and we’re a lot higher on sewer and they use a lot of water, it could encourage them to move to another town.”

Mr. McDuffie replied that the higher out-of-town rates could also encourage a new business to voluntarily annex into the city limits. He added that the goal of the rate change is to encourage more business inside the city limits.

Mayor Devone Jones echoed Alderman Smith’s thoughts.

“Customers outside of town should pay more,” he said, “because no outside customer pays taxes here in Fremont.”

However, he too had reservations about the large level of increase.

He recommended a smaller increase, allowing for a five percent decrease in-town, rather than a nine percent decrease.

Alderman Billy Harvey said he agreed with the idea of an increase as well, but didn’t know how exactly that should be applied.

“We need to be competitive,” he said.

The board requested more information on what other municipalities in the area charge out-of-town customers.

“I don’t know the exact numbers, but I do know Goldsboro charges double,” said Mr. McDuffie.

He agreed to find more information for the board, who will hold off on a decision until next month’s meeting.

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