Blue Ridge council approves $490,000 lead-compliance loan, adopts 8% water and sewer rate increase and expands leak-detection work

The Blue Ridge City Council on Monday approved a $490,000 loan to help the city comply with the state Environmental Protection Division’s new lead-and-copper rule, adopted an 8% increase to combined water and sewer rates and authorized an expansion of annual leak-detection work aimed at reducing substantial system losses.

Becky, a city staff member who explained the loan package to the council, said the total project is $490,000 and that principal forgiveness on the loan is about $318,500 — roughly 65% — leaving the city responsible for about $171,500. “The amount is $490,000; the principal forgiveness is $318,500 or around 65% principal forgiveness on that loan, that means the state is providing that money and the city's portion is $171,500,” Becky said.

The loan is intended to fund the inventorying of service lines, required public notifications, setting up a tracking system and other steps to meet the EPD rule. The council voted on a form resolution authorizing the mayor and clerk to sign the loan documents.

On utility rates, staff presented a third‑party rate study recommending an 8% increase this year to help finance capital projects and address aging infrastructure. Council members pressed staff for context on how the revenue will be used and the affordability impact on residents. A staff response noted the system has substantial water loss; last month, the system lost about 9 million gallons while billing for nearly 20 million, a gap members said must be addressed alongside rate changes.

After discussion, the council approved the 8% water and sewer increase by roll-call vote. A council member said that while an 8% hike may feel large to some customers, spreading smaller increases across multiple years is the intent to avoid sudden large jumps.

The council also discussed and approved several other items: a GMA-required resolution to add PTSD coverage for officers, authorization to hire audit firm Casey to complete audits for 2023 and 2024 together (quoted at $19,500 per year, $39,000 total) with a plan to move audits to a larger firm thereafter (an estimated $45,000/year), and acceptance of a proposal from Election Care Solutions to administer the city’s election (vendor estimate revised to about $25,000–$30,000). The council approved a modest pay increase for the municipal court judge and solicitor, noting the change was discussed during the budget process.

On water-loss mitigation, councilors reviewed a recurring leak-detection contract that uses acoustic loggers, hydrant and meter attachments and robotic inspection for hard-to-see leaks. Cost figures discussed ranged from roughly $48,000–$50,000 per typical engagement; a motion carried to expand the contract to up to double the current scope so the city could pursue more frequent detection work over the next 12 months (the expansion was described in the meeting as up to roughly $96,000). Council members asked staff and the city attorney about contracting flexibility and directed staff to pursue negotiated pricing consistent with the expanded work.

Votes at a glance • BR225 D1 (loan for EPD lead-and-copper work): approved (motion and roll-call). Amount: $490,000 total; principal forgiveness ≈ $318,500; city share ≈ $171,500. (Introduced and explained by Becky.) • BR20252 (GMA/PTSD coverage for officers): approved (roll-call). (Explained by staff; required by the state.) • BR20253 (water and sewer rate increase, 8%): approved (roll-call). (Staff recommended based on a third‑party rate study.) • Election administration (Election Care Solutions): approved (contract award; vendor estimate $25,000–$30,000). • Audit engagement: approved hiring Casey to complete 2023 and 2024 audits together ($19,500 per year; $39,000 total), with plan to transition to a larger firm for future audits (estimated $45,000/year). • Leak-detection contract: motion to expand scope up to roughly $96,000 over 12 months approved (motion carried). (Staff commented on technical leak-detection methods.) • Municipal court judge and solicitor pay increase: approved (roll-call).

What it means The loan approval provides grant-like principal forgiveness to cover most of the immediate costs of complying with the state lead-and-copper rule, while the rate increase aims to fund longer-term infrastructure and capital needs. Council discussion stressed the need to pair revenue increases with targeted leak detection and repair so ratepayer dollars also reduce avoidable losses.

Next steps Staff will execute the loan documents as authorized, proceed with the expanded leak-detection contract and return any negotiated contract terms to council as required. The council suspended the meeting for an executive session on other matters at the close of the public agenda.