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Abita Springs approves 4% annual water and sewer rate increase to secure state loan for sewer projects
Summary
The town adopted a resolution requiring a 4% annual rate increase to meet 10-year debt-service projections required by the Louisiana DEQ for sewer improvements, including the Keller Street lift station and Abita East force main; council amended billing language for new developments before adopting the resolution.
The Abita Springs Board of Aldermen voted to adopt a resolution increasing water and sewer rates by 4% annually as part of a rate covenant needed to secure a loan from the Louisiana Department of Environmental Quality for sewer improvements.
Staff explained the increase is required by ten-year debt-service projections tied to the proposed DEQ loan for two sewer projects — the Keller Street lift station and the Abita East sewer force main. "The accountant came back with the last 10-year projection and said that 4% would need to go into that 10-year projection for us to meet the debt service on the new debt," staff said during the council discussion.
Councilors and residents questioned components of the rate schedule, including distinctions among in-town residential, commercial, out-of-town customers and a higher monthly rate for new subdivisions of 14 lots or more. Residents urged pursuing impact fees or developer contributions to avoid placing higher long-term costs on existing ratepayers. Staff said the 14-lot threshold reflects existing subdivision regulations and administrative tracking concerns, not an arbitrary cutoff.
Before final adoption, the council approved a floor amendment to simplify billing-code references and clarify the phrasing for new-development rates; after the amendment, the board voted to adopt the resolution. The roll call was not read into the transcript by name; the meeting record shows the motion passed with no recorded opposition.
Staff indicated the town may revisit its rate structure in the future if alternate revenue sources are secured; councilors said the increase is necessary to be eligible for the bond commission and DEQ funding that would allow the sewer projects to proceed.
