Commissioners approve $100,000 amendment after Eden raises sewer-treatment rates

The Rockingham County Board of Commissioners on May 19 adopted a $100,000 budget amendment to cover sewer-treatment costs after the City of Eden increased its rates earlier this year.

Ronnie Tate, presenting the request, told the board that Eden raised sewer rates in February "from $7.86 per thousand gallons treated to $20.32 per thousand gallons treated" for government accounts, and that the county sends roughly 21,000,000 gallons a year to Eden. Tate said county staff estimated the actual treatment cost at about $1.76 per 1,000 gallons and that Eden had told the county treatment costs run between $1.50 and $2.00 per 1,000 gallons.

Tate described multi-year negotiations with Eden over a replacement agreement and earlier talks about transferring or selling a portion of the county’s sewer line. He said the county provided Eden with a depreciated system cost of approximately $700,000 for infrastructure between Hilltop store and Eden’s treatment works and that Eden’s proposals to collect development revenues or accept ownership with shared maintenance costs were rejected.

Tate warned the board that the rate increase creates a revenue shortfall for the county’s sewer-related operations and said the increased bills are currently being paid from general-fund dollars rather than the enterprise fund, meaning taxpayers will pick up the difference until a new agreement is finalized.

Commissioners pressed staff about alternatives. Commissioner Barrett confirmed the county attorney had reviewed an agreement received from Eden and returned it; Tate said negotiations remain ongoing and that the elevated rates apply until a new agreement is adopted. Commissioner Richardson questioned legal recourse if a municipal utility raises rates unilaterally under the current agreement; Tate said the agreement allows increases (for example, by CPI) and that, at present, the county has no alternate discharge point for wastewater from the Wentworth area.

Commissioner Hall moved to adopt the budget amendment as presented; the motion was seconded and adopted by voice vote.

The budget amendment authorizes $100,000 from excess reserve revenue in the water and sewer enterprise fund to cover the shortfall for sewer-treatment services from the City of Eden. County staff said they will continue negotiations with Eden’s attorneys and seek to finalize a longer-term agreement that could change future rates.

The board’s action was procedural; no changes to county tax rates were proposed at the meeting. Commissioners said they will follow up with county legal staff about potential recourse and next steps with Eden.