Wholesale water rates in Cullman are set to increase from $2.03 to $2.10 per 1,000 gallons this year, largely due to a decrease in water sales over the past 12 months.

The City of Cullman and Cullman Utilities Board determine the rate based on a formula that factors in operational expenses, the amount of water sold, and debt service.

Over the past year the city sold 175 million gallons less than the previous year, a decrease city officials say was caused by an abnormally wet year.

“There was just a lot more rain this year,” city clerk Wes Moore noted.

Moore noted that if water sales had remained level, the rate would have actually shown a small decrease, as operational expenses were down across the board and debt service showed no major changes at this point.

Though rates are currently hovering just above $2, they’re expected to spike to at least the $3-per-1,000 gallons range once additional debt service from the upcoming Duck River Dam project is added to the mix.

A more detailed estimate on exactly how much rates will change will not be available until the dam design is finalized and bids are returned for the next phase later this year.

The Cullman Utilities Board is working to build a 640-acre lake with a 32-million-gallon-per-day capacity in northeast Cullman County, which will work in conjunction with the area’s current sole major water source Lake Catoma.

The total cost of the dam project is estimated at approximately $110 million, which is up approximately $40 million from initial estimates due to some unforeseen geological concerns at the site and higher-than-expected flood standards.

The Duck River project has been in the works for more than a decade, after being permitted by the U.S. Army Corps. of Engineers than subsequently delayed by environmental challenges that have since been resolved.

The utilities board most recently approved a $310,000 bid from Brasfield & Gorrie for work that will be done to the quarry at the dam site.

 Trent Moore can be reached by e-mail at trentm@cullmantimes.com, or by telephone at 734-2131, ext. 134.