Mount Carmel leadership discusses sewer rate study recommending raises

MOUNT CARMEL — A sewer rate study has recommended that Mount Carmel raises its base rate about 40% over four years. At a Board of Mayor and Aldermen workshop last week, Town Manager Jim Stables said this was painful but necessary. Previous boards only raised rates twice in 20 years, according to previous reporting from the Times News. Last year, the board raised it 35% to start getting the sewer fund out of a deficit. In March, they raised the rate by 4.6% — to stay on top of annual increases — as they waited for the results of the study from the Municipal Technical Advisory Service. The study recommended that rates increase 15% this year, 15.6% next year, then 5%, then 5%. The base rate would go from the current $45.90 to $52.79, then $61.04, then $64.09, then $67.27 in 2030. The additional per gallon rate would also go up. Following this model, Mount Carmel's sewer fund would be positive by 2028, Stables said. The board doesn't have to follow the study. However, Stables said, if they don't, the Tennessee Comptroller will take over the utility for 10 years and set the rates itself. "I know this is a tough pill to swallow," he said. "It must be stressed that the enterprise fund of utility has to pay for itself. You can't supplementally fund it out of general fund tax dollars or any other means. It has to be the fee for service that provides that." The board will formally consider raising the rates at their regular meeting in a week, on June 25, at 5:30 p.m. Other updates Beginning July 13, the trash pickup schedule will be condensed from three to two days — Monday and Tuesday — following a request from collector Kingsport. In the meantime, Kingsport's collectors will place stickers on residents' garbage cans to let them know if their day has changed. The board will update the town's personnel polices and procedures at its next meeting. Acting Town Manager Tyler Williams said, at the workshop, he wants to add bonuses to recognize employees for their years of service. This would be tiered, starting at five years and capping at 30 years. He said this would have a small financial impact because the town has few employees and they'd hit their milestones on a staggered basis. The board also discussed whether the town should officially become the City of Mount Carmel to avoid confusion, particularly because its main building has "City Hall" signage. The aldermen leaned toward keeping it a town, as that's what people are used to and what the founders intended. They also supported renaming the building to "Town Hall" if it wasn't too expensive an endeavor.