BELMONT — Village Council recently heard the first reading of an ordinance to raise water and sewer rates.

During a council meeting held Dec. 4, Village Fiscal Officer Ricky Burkhead said the rate the village pays the Belmont County Water & Sewer District is set to increase by 5% in January with planned 2.5% yearly increases after that.

He went on to say he had spent a good deal of time going over the village’s water-related expenses and revenues and that in the past the community had been able to count on village-owned wells producing around 60% of the water used in the village. But, due to the drought conditions this summer, the wells hadn’t produced close to that number for months.

Burkhead added that he had discussed with Board of Public Affairs President Ken Davis and other village officials about making the new rates such that some money could be placed into a “replacement fund” that could be used for major repairs, the purchase of new water meters, water tank cleaning and inspections and other expenses.

Burkhead said he initially thought that setting the rates so that $1,000 per month could be put into the replacement fund would be appropriate.

“But I think the better route would be to set back $2,000 per month,” he told council. “That would allow the water department to replace 96 meters per year.”

He later added that doing so would keep the village from having to take out a $60,000 loan to purchase all new meters at once.

Davis confirmed Burkhead’s assertion about the water meters, saying they had been installed in 2007 and had an expected 20-year life cycle. He noted that at least one had failed already.

Burkhead then proposed his recommended rates, noting that council could hold the first reading for the rates and that changes could be made prior to the second and third readings if council wanted.

He said the base charge would be $25 for customers within the corporation limit and $23 for those outside the village with water and sewer and $6 if they were “water only” customers, adding that $6,658 per month out of the base charge would be needed to pay off debt.

He then proposed rates of $13.25 cents per 1,000 gallons for water and $14.75 per 1,000 gallons for sewer.

He broke down what impact the increases would have on customers based on actual usage, saying that those using 1,000 gallons per would see a $6 increase, those using 2,000 gallons would see an $11 increase, those using 3,000 gallons would see a $16 increase and those using 4,000 gallons would see a $21 increase.

In response to a question from a resident attending the meeting, Burkhead said that when the village refinanced the loan that had been used to put in the sewage system, it had turned a 40-year loan into a 15-year loan to save the village $1 million in interest over the life of the loan. The village still has 11 years left before that loan is paid off.

Council President Derek Cain made a motion to approve the first reading of the water rates with all five council members present voting in favor. Councilwoman Sara Scott was absent from the meeting.

Meanwhile, Burkhead updated council on the final costs of the recently completed demolition of the old Belmont school building, saying the total cost of the project had been $288,920 and that the grant towards the project that had been secured with the help of Belomar Regional Council had paid $216,690 while the village had used $45,643.46 in American Rescue Act funds toward the project. That left the village paying $26,586.54 out of the general fund.

Burkhead noted that he would be calling the village insurance company to notify it that the building is gone, which should decrease the community’s liability rates significantly.

In other business, council held the second reading of legislation to change the notice requirements for the village’s property maintenance, upkeep and high grass ordinances.

Members also approved combining the three separate parcels where the Belmont Fire Department will be constructing a new fire house next year.

The December council meeting opened with a brief executive session that was called to discuss personnel.

Belmont Village Council meets at 6 p.m. on the first Wednesday of each month in the Stanley Sobel Village Offices inside the gym on Brown Street.