BY DAN HILDEBRAN
Lake Butler City Commissioners approved an amendment to its contract with the Department of Corrections for water and sewer service that will triple the revenue the municipality receives from its largest customer and will fund an additional operator at the city’s wastewater treatment plant.
During a July 10 special commission meeting, officials approved the new deal for the state agency’s Reception and Medical Center, which is around a mile-and-a-half south of the city limits on County Road 231.
Under the prior agreement, the state paid a base rate of $20,500 a month for the first 6.750,000 gallons, and $2.80 per 1,000 gallons over the base allowance.
With the new amendment, FDC will pay $66,816 for the first 9.6 million gallons per month, and $6.96 for each 1,000-gallon unit above 9.6 million gallons.
City Finance Director Dave Mecusker told commissioners that the city has already adjusted its billing according to the updated rates. He added that while negotiations were underway in April, Lake Butler billed FDC $29,860 under the old agreement. In June, the city billed RMC under the amended terms for around $88,000.
“So, it went from $30,000 to almost $90,000, and it goes up (as RMC’s population increases),” the finance director said. “So, we have a very good and solid revenue flow in our wastewater, and the commission is to be commended for getting that contract agreed upon because it took heavy negotiations, and it took a long time to get to this point.”
Mayor Melissa Hendrix said the additional revenue will fund a wastewater operator position for the city. She added that when the municipality’s new wastewater plant becomes operational, staffing requirements will increase from one position to three.
Hendrix added that RMC uses 77% of the city’s water.
