The Ferriday Board of Aldermen approved a contract last week to sell water to the Town of Ridgecrest.
Aldermen authorized Mayor Sherrie McMahon to sign the three-year contract which includes a deposit payment of $10,000 that will be paid off over a six-year period.
The resolution was passed at a special teleconference meeting Thursday night, June 25.
"It's basically $4.70 per thousand gallons with a $10,000 deposit," said Town of Ferriday attorney Myisha Davis.
She said the deposit will be paid over three years at a rate of $140 per month during the first three years and $140 per month during the second three years.
"The Town of Ferriday is excited to supply the Village of Ridgecrest with water, so their citizens will have access to quality Ferriday water," McMahon said. "We have been working hard on our water system and recently added aerators to our tanks. We are already seeing a big improvement in the water. We have flushed every fire hydrant. We are anticipating excellent results in our water testing."
The contract states that water purchases shall not exceed 93,500 gallons per day and that anything over 115,000 thousand gallons will require Ridgecrest to pay more.
The board also approved its proposed $2,637,076 fiscal year budget for 2020-21.
The budget for the proposed fiscal year, which runs July 1, 2020 through June 30, 2021, shows revenue of $2,681,524 and expenditures of $2,637,076 for a projected change in net position of $44,448.
Sales tax is expected to generate $1,132,500.
Expenses include $44,000 for McMahon and $30,600 for aldermen.
Salaries total $950,000.
McMahon said the July 14 town meeting will be held at Ferriday Hall at 6 p.m.