MEMPHIS, Tenn. — Monday evening, in a reversal of last week’s recommendation from the City’s Financial Advisory Commission, the Germantown Board of Mayor and Aldermen approved a $27.50 water and sanitary sewer credit for residents as a result of the recent water flushing requirements.
The vote in favor of the residential customer billing credit will result in a one-time credit appearing on billing statements beginning immediately.
Bills scheduled to be mailed August 3 and 10 were held in anticipation of the credit. Billing will resume this week.
Intended to provide relief for the cost of water used for flushing following the lifting of Germantown's "do not contact" order, the credit was approved by the State of Tennessee Comptroller.
Germantown officials said the amount is intended only to cover the cost of water used to complete the flushing protocol mandated by the Tennessee Department of Environment and Conservation (TDEC).
Germantown water customers pay a base rate of $8.78 monthly for water services, according to the city. The credit covers this base rate plus 6,000 gallons of water and related sewer charges.
The cost of the $27.50 credit to each Germantown resident totals $360,662, officials said.
Last week, the Germantown financial advisory commission voted against the decision to provide a bill credit. After extensive discussion that balanced the hardship to residents and the fiscal impact to the utility fund, the group was deadlocked as to whether a credit should be given. The final vote resulted in a subcommittee recommendation to not provide a credit.
Germantown had to shut down the water supply for one week in July from diesel contamination in the entire water supply.
Germantown Mayor Mike Palazzolo told ABC24 a worker was filling a generator tank with diesel fuel so it could keep providing power to the city's water treatment facility, but for some reason, the technician didn't notice the tank had filled up and was spilling dozens of gallons of fuel before cutting off the supply. That worker was put on administrative leave and later fired.
He said the diesel drained down a slope, contaminating dirt above the source to a major storage tank.
Palazzolo apologized for what happened and promises steps are being taken so it won't happen again.