Matt Lasley | GC News-Gazette Grayson County Water District Manager Kevin Shaw addresses the Caneyville City Commission regarding its new water rates for the year.

Matt Lasley | GC News-Gazette

Grayson County Water District Manager Kevin Shaw addresses the Caneyville City Commission regarding its new water rates for the year.

The Grayson County Water District on Monday announced that the city of Caneyville will receive a reduced water rate this year.

Beginning in 2018, Caneyville and the water district established an annual contract for the purchase of water that would be reviewed each year.

"The good news is your rate went down," said Grayson County Water District Manager Kevin Shaw.

According to Shaw, the city's current rate for water purchased from the district is $3.076 per 1,000 gallons, but, provided the new contract is approved by the Public Service Commission and Grayson County Water District Board, that rate will go down this year to $2.771 per 1,000 gallons.

Shaw said last year's rate was based on the water district's 2017 water production of 215 million gallons, but, in 2018, that number increased to 245 million gallons. The additional 30 million gallons, he said, enabled the water district to offer Caneyville a lower rate for the coming year.

Shaw said that, if the water rate is lower for Caneyville, that generally means it is cheaper for the district to produce water.

Caneyville purchased 47,652,000 gallons of water from the district last year, which, Shaw said, would equate to a $12,000 to $13,000 decrease with the new rate if the city purchases the same amount this year. Caneyville currently uses around 125,000 gallons of water per day.

The city commission voted to accept the new water rate and enter into contract with the Grayson County Water District. According to Shaw, it can take around 30 days to receive approval from the Public Service Commission after the new rate is submitted, so the new rate could go into effect in July.

Caneyville Mayor James Embry said that, while the reduced rate from the water district is good news, the city has been lax in increasing its own water rates for customers, and, with a tight operating budget and the upcoming project to replace a significant portion of the city's water lines, customers should expect an increase in their water rates in the near future.

According to Caneyville City Clerk Connie Gootee, the water line replacement project requires a water rate increase.

Caneyville's current minimum water rates are $26.84 for 0-1,500 gallons including sewer for in-town customers and $22.28 for 0-1,500 gallons not including sewer for out-of-town customers.

As of this week, Caneyville officials had not determined when they would review the water rates for an increase.

In other business:

*The city commission approved the first reading of its proposed budget ordinance for Fiscal Year 2019-2020 and amended budget ordinance for Fiscal Year 2018-2019. The second and final readings of these ordinances are expected to be held at the June 10 meeting of the city commission.

*The city commission voted to hire Hartford, Kentucky attorney Tara Ward to serve as its legal counsel on the upcoming water line replacement project.

*Marilyn Templeman said a car show and market day will be held on Saturday, June 29 at the Caneyville Purple Flash Community Center. The car show will be held from 10 a.m. until 1 p.m., and the market day will be held inside the community center gym from 9 a.m. until 2 p.m.

*The city is looking for someone new to oversee its beautification committee. Interested individuals should contact Caneyville City Hall at 270-879-9701.