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VIDALIA, La. — A rate study conducted by the Louisiana Rural Water Association suggests raising the average residential water bill in the Town of Vidalia by $10 so that the town would no longer be operating its system at a loss but with a small profit margin.

Currently, Vidalia charges about $2 or $3 per thousand gallons of water produced when it costs about $7.35 per thousand gallons to produce, said Amy Fontenot of LRWA to attendees at Tuesday’s regular Board of Aldermen meeting.

Revenues in this fiscal period are expected to be around $808,464.46 and expenditures are estimated to be about $1,286,626.04, she said.

“These are actual numbers coming from audit or documents and it shows that you guys in the water department are operating at a loss every year,” Fontenot said.

The Louisiana legislature has mandated that municipalities that do not have a certain amount of profit from what they charge for water will not be eligible for state grants or loans that deal with updating water systems, Mayor Buz Craft said.

“I understand it because a lot of municipalities might not be charging their citizens enough to maintain their systems,” he said.

With a suggested increase, the average residential bill would increase from $23.18 per month to $33.18 per month with a base rate of $30 instead of $20, Fontenot said.

For commercial connections, the average bill would increase to $159.80 from $55.37. For industrial connections, the average bill would increase to $515.66 from $166.58, she said.

While the rate study was accepted Tuesday, Craft said the Aldermen must further approve any increases in a town ordinance and can make further adjustments to it if needed.

Because Vidalia is a member of LRWA, Fontenot said the rate study costs the town nothing.

While the normal rate would increase by $10 for a household if the aldermen do approve it, Craft said “Even at $30 or $33 we’re still more than half cheaper than anywhere else,” where most people pay an average of $60 or $70 for their water across the state.

In other matters during Tuesday’s regular Board of Aldermen meeting, CPA Debra Moak said while the town’s auditors with Silas Simons were unable to present it Tuesday the town’s audit for the fiscal period ending June 30, 2024, is ready and posted on the legislative auditor’s website at lla.la.gov/reports/audit-reports.

The audit held no findings, meaning it was a clean audit without any financial control issues, significant deficiencies or compliance issues noted.

“If anyone wants to they can go to their website and look at it. It was a good audit. My hat’s off to Debra and all of the office staff who keep the town running efficiently. No findings and I’m really proud of that fact. They do such good work of handling the money, managing the money and making sure everything is done right,” Craft said.

The aldermen approved an occupational license application for Delta Cheer Athletics LLC by Dana Wagoner at 2046 B. Carter St. The business is a competitive cheerleading and tumble gym, officials said.

A second occupational license application for DLee’s Kustoms LLC by Damarion Lee at 506 Sycamore St. was denied. Craft and Alderman Tron McCoy noted that it appears the business would’ve been in a residential neighborhood and the license application says it’s for automotive painting, refinishing, body shop repair, vehicle customization and enhancement services.

“That is in a residential area and that could be problematic,” Craft said, adding the applicant is welcome to resubmit the application and come back to the board with further details for clarification.

A sign application for Miss Lou Tax & Accounting at 903 Carter St. was also approved.

The aldermen approved the hiring of Jhyrielle Thomas as a full-time dispatcher for the Vidalia Police Department.

Lastly, the board opened ample sealed bids that were submitted for the sale of surplus vehicles and equipment and awarded the sale of each item to the highest bidder.

No additional actions were taken at Tuesday’s meeting.