Water rates will soon be on the rise in Smithville.

According to a recent rate study, the loss of the City of Smithville’s biggest water customer, DeKalb Utility District, will likely cause water rates in the city to rise by as much as 45 percent in the coming five years. Water customers in the city will also face an estimated 40 percent hike in the sewer rate over the next four years to pay for the renovations now being performed at the city’s water treatment plant.

The hike would cause water rates in the city to eventually increase from $5 to $7.69 per thousand gallons, and sewer rates to rise from $5 to $7.33 per thousand gallons.

City aldermen and the mayor received copies of the report at the April meeting of the city council from City Administrator Hunter Hendrixson, who suggested a workshop be scheduled to discuss the results.

“There’s quite a bit to look at here,” Hendrixson told the council. “What we’re hoping to do is set up a workshop in the next few weeks and have Buddy (Buddy Petty of Rate Studies Incorporated of Nashville, who compiled the report) sit down here and go through the numbers and explain it to you. There is a lot in here. A lot of information, charts, graphs, etc.

“It shows where we are going over the next three to four years without the DeKalb Utility District. They are still hooked on to the City of Smithville. They haven’t yet converted over to their plant 100 percent, but I think they are in the process of it. They are still a City of Smithville customer. Unfortunately over the next three to four years we are probably going to have to raise our rates to some extent to make up for the loss of revenue.

“It (the report) shows the percentage of increase needed to keep the water and sewer utility in the black. We can’t go two years in a row operating in the red otherwise the state will determine that for us,” Hendrixson reported.