LEDBETTER, Ky. — Keeping a water district afloat or flushing money down the toilet? Customers are outraged by a major rate hike.

Raising rates by more than 30-percent: the price many of you pay every time you flush your toilet or wash your hands is about to go way up.

Officials at the Ledbetter Sewer District said there must be a significant rate increase or else the bank will come in and take over.

The manager said back in the 90s when the sewer system was built, the calculations were all wrong. The system ended up costing more to build, more to maintain and brings in much less revenue than anticipated.

The original board members resigned and the water district had to take over, essentially inheriting a $3.2 million loan. The manager said this district is at a point where they either default on a bank loan or make some very unpopular changes to the customers' bills.

That Ledbetter Water District Manager Billy Downs said he doesn't quite grasp is where the sewer district's founders got their facts.

"They probably didn't know all the costs that were going to be involved, so this probably turned out to be a lot more costly endeavor than they thought it would be when they first started out with it," Downs said.

Downs said after all the Ledbetter sewer system board members resigned, the water district had to take over, and now they're left with only one option.

"It was built, the cost was incurred and now we have to, we have to pay for it," Downs said.

Downs said customers are flushing new things that cause new problems, like Swiffer dusters and synthetic cleaning wipes and those items end up clogging pumps and those repairs can end up costing thousands of dollars," Downs said.

"I'd like to see it. I want to see every item itemized. I want to see when every dime is going because I just don't see it," customer Renee Fowler said.

But some customers feel they can't trust the district.

The district holds a business meeting on the third Monday of each month at 5:30 p.m. They then go over their budget and expenditures.

The chairman of the board said the meeting is public. In fact, he encouraged folks to attend so they get a better grasp on the real numbers.

The public service commission in Frankfort recommended a rate increase. The local district is proposing one but that proposal must go back to Frankfort for final approval. So, it's not a done deal just yet.

We have some quick facts on the districts financial situation, plus line-by-line expenditures and the districts budget.