Staff Writer

CUMBERLAND GAP, Tenn. — The Cumberland Gap Board of Mayor and Aldermen (BMA) held a public hearing on Monday evening to consider placing a temporary surcharge on monthly water bills.

Over the last several months, the town of Cumberland Gap has encountered financial distress when attempting to pay their monthly water bill — falling nearly $2,500 short for the months of January and February. The board has been forced to dip into their money market account to cover the mounting expenses.

Board members gathered on Monday to discuss ways to generate funds for the town — in order to replace all the money that has been taken from the town’s money market account.

Alderman John Ravnum stated that the most logical solution would be to temporarily increase the town’s base water rate by 33 percent. The current monthly rate is set at $18.

“With this increase, it would give us roughly $9,000 — at the end of a year — that we would be able to use to address the problem,” Ravnum declared.

“We have been absorbing this for far too long, and we just keep on getting farther and farther in the hole,” replied Alderman Bill McGaffee. He agreed with Ravnum’s proposed six-dollar increase, and stated that it would allow the town to generate additional money, rather than just break even.

“We have drained that money market account long enough,” McGaffee added. “If there is any extra anywhere, we need to replenish that and put it back. Then, we might consider a reduction once we get everything under control.”

Alderman John Ravnum then said that the board needs to concentrate on the town’s leak concerns.

“If we are going to go ahead and raise the rates, we need to go ahead — after we have covered our bills — and be looking at a plan to fix the leaks,” said Ravnum.

Mayor Douglas explained that the board recently purchased new water meters for the town in hopes of pinpointing problem areas. He explained that most of the meters have already been installed, but progress has been slowed due to wintry weather.

“If we find the leaks... and can get them fixed, it’s going to help the city,” expressed Alderman McGaffee.

Mayor Douglas promptly responded:

“But in order to find those leaks, we need a couple of things. First of all, we’ve got to have dry weather. Second of all, we are going to have to have someone come in with more expertise than what we’ve got to detect these leaks.”

He then stated that there has be other faulty water lines in Cumberland Gap that the town is unaware of, which is perpetually adding to the town’s financial instability.

“It’s going to take a consulting firm to come out here and help us with that... We are going to have to explore every avenue to do this,” Douglas contended. “Leak detection is going to be part of this plan to justify the cost we are going to incur by raising the water rate. There is no way that this town can find those leaks the conventional way we have been doing it.”

“And there is no way we can continue buying water and not accounting for it,” responded Alderman McGaffee. “I could live with a 20 percent loss, that is probably close to normal, but 50 percent.”

Mayor Douglas explained that a 14 percent loss is common for most cities and towns.

“I have no qualms with covering our expenses, that’s mandatory,” explained Douglas, “But we have to have justification behind this — such as ‘find and repair’.”

Alderman Bill McGaffee responded by saying, “We just can’t continue subsidizing sewer and water, and not raise the rates when our cost is going up. We have to cover our costs, that is just common business sense.”

The board then decided to place a 33 percent surcharge on all of the town’s water bills. The temporary increase will go into effect next billing cycle, and it will remain elevated until June 30, 2010. The base water rate will be raised from $18 to $24. Water rates will be discussed further at the town’s next budget meeting in June.

“None of us are happy with the increase, but it’s something that we must do,” concluded Alderman McGaffee.

Joe Webb and Jerry Hopson were absent from the public meeting.

The Cumberland Gap BMA will meet again on Monday, March 1, 2010.

Adam Young is a Staff Writer for the Middlesboro Daily News. He can be contacted at ayoung@middlesborodailynews.com.