BRYSON CITY, NC (WLOS) — Bryson City merchants and residents are shocked by their recent water bills and some businesses are wondering if they can stay open.

A key reason for the new rate is the modernisation of key infrastructure, but discussions are currently underway to see if the rate can be reduced.

The new water rates in Bryson City went into effect at the start of the new fiscal year, surprising many business owners and residents.

Mike Shakar, the operator of the Everett Street Diner, expects prices to rise.

“A reasonable person would probably guess 20 to 30 percent,” he said.

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But the final bill came to $1,285 and took him completely by surprise.

He knew that adjusting the billing cycle would add a few days to the month, but he broke down his costs by day.

In the end, it was a 233% increase. No one was prepared for that kind of increase,” he said. “For some companies, that might be too much. They wouldn’t be able to afford to pay the water bill, pay themselves, pay their employees and continue doing business.”

Shakar is also concerned about the residents.

There are many people on fixed incomes… What choices do they have now? “Pay my water bill? Pay my rent?”

Several merchants and residents presented their concerns to the city council.

“The state of North Carolina wants you to have a commercial water system where the water and sewer systems are self-financing,” said City Councilman Tim Hines.

The drastic price increase is due to critical infrastructure needs. According to Hines, the expansion of the city’s water and sewer system is at a critical stage.

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“Originally it was a $25 million project and we expected to get about $17 million of that in grants. That means if we don’t find ways to reduce the costs even further, we’ll be looking at an $8 million loan,” Hines said.

The city also faces other infrastructure problems, such as pipes – some of them made of clay.

“In some other areas, we have infrastructure that dates back to the 1960s, and if it fails, the consequences are pretty severe,” said Nate Bowe, director of Bryson City’s public works department.

Hines says the situation was not communicated perfectly to the public.

We learn from mistakes and try to find new ways of communicating,” Hines said.

Shakar says he doesn’t blame city leaders.

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“A group of us merchants are trying to help this city council and the city councilors – let’s try to work together. Let’s try to find another way,” he said.

Hines says the board is working overtime to that end and will invite the public to a town forum later this month.

We are investigating everything we can and using all the resources at our disposal to find another solution that would soften the blow,” Hines said.

This public forum will be held on August 27th at 6 p.m. at the Swain County Administration Building.