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St. Tammany Parish utilities rate study required by state grant would raise parish utility rates, officials say
Summary
Department of Utilities staff told the council a state‑required rate study tied to an $82 million Water Sector Program award recommends a uniform parish rate and increases to meet operating and capital needs; officials said the changes affect only parish utility customers and are not a tax.
St. Tammany Parish Department of Utilities Director Chris Tissue told the council the parish must adopt rate changes recommended by a state‑selected consultant as a condition of accepting an $82,000,000 Water Sector Program award.
The rate study, prepared by a consultant assigned by the state after roughly 18 months of data collection, models operating costs, capital plans and debt service and recommends metrics such as a minimum sustainability ratio of 1.15, a debt‑service coverage ratio of 1.25 and increasing reserves to six months from the current three. "This is not a tax," Tissue said, adding that rate revenue is intended to fund capital improvements and day‑to‑day operations that will be reinvested in the system.
Why it matters: Parish staff said the Department of Utilities operates…
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