Representatives from Daphne Utilities presented to the Utilities Board at its meeting Wednesday a rate increase proposal that would equate to about $44 per year for the average consumer.

No one from the public spoke either for or against the rate increase proposal.

Daphne Utilities general manager Rob McElroy listed factors involved in deciding to increase rates, including:

“We’re being pushed to have cleaner water coming out of the ground and into your house,” McElroy said.

Increased regulatory requirements demand more water testing and treatment, incorporating new processes and reporting more data about the utility’s system, according to a fact sheet supplied at the hearing.

“We have some parts that are 30 to 50 years old,” he said. “We had some parts installed when Ike was president. It’s not a young system.” Dwight Eisenhower, or “Ike,” served two terms as president of the U.S. from 1953-61.

McElroy said maintenance would include replacing miles of underground piping along with upgrading wells.

Daphne Utilities plans to construct a $5 million water treatment system, located near D’Olive Creek, including storage units and water pumps.

“Sewer flow doesn’t hit us at a steady rate,” McElroy said. “It hits us in spikes. When it rains, large amounts of water flows and it has to be stored.”

He said the utility also needs a new dryer, a device used to process biosolids into a disposable waste product.

“Half the time, this dryer is down,” he said.

McElroy said the treatment system used in this area — in which fluoride is injected from a separate pump into the water supply — does not meet Environmental Protection Agency regulations and needs an upgrade.

The current injection system often leaves buildup in pipes that can affect water pressure, officials said.

“We’ll have much better water service in the heart of Daphne,” McElroy said.

“We’re at 70 percent capacity in sections of sewer lines and that is only increasing,” McElroy said.

“We’ve got some lift stations out there that need help pretty bad,” Daphne Utilities field services manager Larry Jackson said.

Lift stations are used to store and transport sewer waste products.

“We have not had a rate increase since early 2007,” McElroy said. “Sometimes they are necessary. The rate increase we’re looking at right now we feel is very marginal.”

Board member Ron Scott — also a City Councilman — addressed the topic of cross-subsidization.

Scott said that while Daphne Utilities owns three units — water, sewer and natural gas — revenues from one department will not be used to cover costs of another service.

In other words, profits from water services will not be used to pay for providing sewer services.

“The real costly thing in being in the utility business is not the water, it’s the sewer,” McElroy said. “The costs of being in the sewer business goes up each year.”

The Utilities Board did not vote on the proposal at Wednesday’s meeting.

The item will be voted on at the board’s next business meeting set for 5 p.m. March 31 at City Hall.

Rate increase summary

Below is a breakdown of how Daphne Utilities’ proposed rate increase will affect monthly bills.

For the average customer, using 6,000 gallons per month:

For the minimum use customer, using less than 1,000 gallons per month: