By By MICHELE GERLACH Publisher
The Brewton City Council Tuesday night approved a bond issue of up to $5.8 million for sewerage work, and increased the flat rate for sewerage service paid by all residential customers by $3 each month.
Last summer, city officials estimated repairs to the existing system would cost $4.7 million. In areas that qualify for Community Development Block Grants (CDBG), grant funds will be used for the project, Jennings said.
Bill Blount, chairman of Blount, Parish and Co., the city's investment bankers, addressed the council and advised them to simultaneously approve the rate increase while issuing bonds. Blount said Brewton customers' current rates are lower than most in the state.
Increasing the rate will improve the city's bond rating and interest rate for the bond, he said.
Residential sewerage customers pay a flat fee of $6 per month, plus an additional charge per thousand gallons. Beginning March 1, the flat fee will be $9 per month.
The bond issue also will refinance an existing $565,000 short-term loan.
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