The graduated rate system in question was approved in Dec. 2010 by the council to reverse a negative trend in the city's water and sewage departments. The funds, designed to create revenue for the city, were losing money each year.
The initial rate increase successfully turned the tide and created a profit for 2011 giving the council, at the recommendation of City Manager Pat Crook, the ability to postpone another scheduled rate increase to take effect this month.
"The water system came from a loss last year, it will probably go to a half a million dollars in revenue. The water system is an enterprise fund. ... Water and sewer fund is a for-profit business. It's suppose to make a profit and a good profit, a good enough profit to pay for its debt and put aside reasonable reserves," Crook said, explaining how the system's recent performance can allow for a deferred rate increase. "If this pattern continues, if we improve this year and we continue to improve, we can ... consider delaying or postponing that phase two of the rate increase.
"As more stringent rules come into play from [the U.S.] Environmental Protection Agency and [the Georgia] Environmental Protection Division that requires us to spend more money on the water and sewer system, that still needs to be held out there as an option because our costs will continue to rise."
The Adairsville City Council will vote Thursday on postponing the phase two, scheduled rate increase for six months.
Announced at Tuesday's work session was the "semi-retirement" of Adairsville Finance Director Roger Freeman. Now working part-time, Freeman served the city for eight years. A motion to be voted on Thursday will have Tony Chastain perform certain financial duties, including the annual audit and monthly financial statements.
"Roger has done a lot for the city of Adairsville," said Mayor Even King. "I rely on his judgment and expertise not only in finance but in all matters and I look forward to continuing to draw on that judgment."
Also on Thursday's agenda will be three additions and amendments to city ordinances. Changes will be made in the areas of pawnbrokers, flea markets, and bed and breakfasts. Amendments to ordinances concerning pawnbrokers and flea markets will center on best business practices and the prevention of fencing stolen goods. Changes to bed and breakfast ordinances will ease restrictions to create a more business-friendly approach to the industry.
To keep the city's pension plan agreement, the council will vote on a restatement in-part generated by the Georgia Municipal Employees Benefit System to update IRS regulations and define members of a required pension committee by position.
Lastly on the agenda, is the nomination of mayor pro-tem and amending the position to last for the appointee's term rather than on a per-year appointment.
The Adairsville City Council will meet Thursday, at 7 p.m. at city hall.