Town water rates going up
By Lee Melsek
lmelsek@gmail.com


tWater rates for the island's 9,158 homes and business will be going up either in November or January.
At at workshop Thursday, the council heard recommendations from their rate consultant and appear to favoring rate hikes that would increase an average single family home's rates about $6.48 a month for every 6,000 gallons of water consumption.

The hike would increase a condominium with a 5/8th to 1.5 inch water meters about $21 a month for every 6,000 gallons of water usage. Larger condos with 2 to 4 inch meters will pay just under $100 a month more for every 300,000 gallons of water.

Condo owners also will be charged a monthly base rate fee of $19.53 a month per unit while the base fee for single family homeowners will jump from $6.20 a month to $6.82 a month. The town hasn't been charging each condo unit a base rate but will begin doing so if council approves the proposed rate hikes.

Commercial and non-residential buildings will also pay higher rates. The rates for buildings with 5/8th to 1.5 inch meters will increase by about $21 a month for every 6,000 gallons. Businesses and non-residential buildings with to 2 to 4 inch meters will pay just under $100 a month more for every 300,000 gallons.

The council will decided later whether to implement the rate increases in November or January. Since condominium associations prepare their budgets in the fall some town officials think it fair to wait until January 1 to begin implementing the rate hikes.

The council will vote to approve or deny the rate hikes soon but it appeared Thursday the proposal has their approval. The increases are needed because the town's water system is in default on the loan used to purchase the system at the turn of this century. The town has never adjusted rates to correct the deficit in it's revenues and its loan went into default last year. The systems reserve funds have diminished to only about $100,000, not enough to fix any major breakdowns, town staff warned.

Interim Town Manager Jack Green warned that if the rare hikes aren't approved by council soon "we will be in a heap of trouble. If we do not take this action we may as well close shop because we are going to run out of money."

Despite the fact the water system has been crumbling for years and is in critical need of major repairs, the council again put off deciding how to borrow the money to fix it. Instead, Mayor Larry Kiker insisted on getting a long range plan for repairs from Green.

Green said he will put together a plan that answers what the town needs to fix it, how it will be fixed and how much it will cost.

Although the water system has needed the major repairs for more than nine years, it wasn't made clear why those questions haven't been answered already.

Green said he would try to put the plan in place and present it to the council in about six weeks.

Want to respond to this coulumn? E-mail Lee Melsek with your own opinions. lmelsek@gmail.com



<<< BACK

If you'd like Tidelines mailed to your home or business each month call Lee at 470-3407 and let him know. It's free.