Water rates in Halifax County will increase as soon as practicable to reduce anticipated shortfalls in its water and sewer enterprise funds.

Commissioners this evening approved the rate increases after a presentation by county Public Utilities Director Greg Griffin.

The vote came following recommendations made by Green Engineering, which were explained in a letter from Thomas D. Deines, an engineer with the firm.

In the letter to County Manager Tony Brown, Deines explains that following last fiscal year's audit, the enterprise fund did not provide a debt service coverage ratio in compliance with the revenue bond covenants that took effect that fiscal year. “Consequently, the Local Government Commission was notified and subsequently requested a corrective action plan from the county to eliminate this violation of the bond order.”

The bond order was for Phase XI Water and Sewer Enterprise Revenue Bonds and county staff requested Green to provide recommendations regarding revisions of the service charges and operating budget to comply with the order.

“Through consultation with county staff ,” the letter said, “… Green Engineering revised the county's operational budget for the Water and Sewer Enterprise Fund to account for all existing and new debt for the next fiscal year; corrected budgeted revenue line items to those permissible by the bond order; reduced expenditures, where possible, to limit the amount of rate increases and projected new rates that would provide the required debt service ratios.”

The following rate changes were approved:

The residential availability fee would go from $25 to $27. The cost per 1,000 gallons would go from $2.82 to $3.15.

The commercial availability fee would go from $25 to $27. The cost per 1,000 gallons would go from $2.95 to $3.20

The bulk rate per 1,000 gallons would go from $2.65 to $3.05.

An institutional fee for schools would be added and the cost per 1,000 gallons would be $4.25.

A prison fee would be added and the cost per 1,000 gallons would be $8.