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The Governmental Utility Services Corporation (GUSC) of Moody approved a sewage rate increase for customers that will take effect next month.

GUSC board member and financial advisor Joe Kelly said that the increase encompasses a moderate change for residential and a larger rate change for commercial. He added they are also changing the impact fee structure for new services.

The rate increase comes in part to equalize billing. It also comes on the heels of the 2008 audit that pointed out that the GUSC was short on revenue to meet bond requirements. Kelly said bond requirements have been met, but the monthly deposits that pay the quarterly bond requirements are not being met on time. “We were required by the audit to address that issue,” he said. “The bond indenture stated that we must adjust rates accordingly to meet the bond requirements.”

“We were very careful and looked into what surrounding municipalities have done,” he said. “One thing we wanted to make a particular point on was not to be the highest person on the block, so to speak.” He added that the GUSC looked at other municipalities and adjusted rates to a value that are average-to-below-average, in comparison.

Moody residential customers currently pay a lump sum base charge of $9.40 per month. The new residential rate will total $11.60, which is up $2.20 per month.

Currently, most commercial customers have a usage charge of approximately $8.76 per 1,000 gallons. The new rate will be $13.20 per 1,000 gallons. Some are already paying the current rate. However, others will see a $4.44 per 1,000-gallon increase.

Impact fees for new services per building will also see a $1.64 increase. They are up from $12 to $13.64.

“This was not a pleasant thing to have to do,” Kelly said. “It was an absolute necessity.”