With the guidance of RSMeacham CPA’s, a new water rate plan was developed and implemented to Cordell residents beginning on July 17th after it was passed with a majority vote by City Council at their regular meeting last Monday night. Two members, Earlene Smith and Tad Boone, voted against the rate restructuring.
Due to rising costs of water from Foss reservoir, necessary infrastructure improvements, and the fact that prices for parts and repair components have increased drastically, the City’s water department has been operating at a significant loss.
One major component of the new rate plan is that the minimum usage has been changed from 2,000 gallons to 1,000 gallons. Households using 1,000 or less will still pay the minimum rate of $17.59, while those using more than 1,000 gallons will see a rate of 8.50 per thousand gallons in the 1,001 – 2,000 gallon tier. The higher your usage moves in the tier structure, the higher the rate per gallon will be.
The idea of the tiered rate structure was designed to protect the financially vulnerable, such as those on a fixed income, from feeling the effects of the rate increase, as long as they use less than 1,000 gallons per month.