By GLYNIS HART
[email protected]
NEWPORT — One year after the selectboard approved only half of the water and sewer rate increases recommended by the town finance department, it approved 20% increases for both on June 17. The increases will affect utility bills in November.
Standard water rates will climb from $7.84 per 1,000 cubic feet to $9.41. Sewer rates will rise from $10.71 to $12.85. High volume users — more than 5 million cubic feet — will see rates rise from $5.29 to $6.35.
Whereas last year the board approved 10 and 15% increases for water and sewer, respectively, this year the selectmen bowed to necessity and approved a greater increase.
According to the update water sewer rate study, “Water fund projections show declining working capital balances which will become negative in the year 2021-22 … An adjustment to the user fee of 45% in FY2020 will bring the working capital balances to the lower end of the recommended range.” Newport Finance Director Paul Brown recommended phasing in increases of 20% in 2020, 20% in 2021, and 2% annual increases thereafter.
Sewer fund projections show its working capital balances becoming negative in 2021-22 as well, largely because the town must upgrade the wastewater treatment plant to remove phosphorus. “An adjustment to the user fee of 184% in 2021-22” would bring the sewer fund capital balances “to the lower end of the recommended range.” Brown recommended phasing this increase over three years, with a 30% increase in 2020, 40% in 2021, and 40% in 2022.
“You just can’t catch up” with lower increases, said Selectman Todd Fratzel. Fratzel said he had sat down with Brown and watched him crunch the numbers.
“We tried to lower them,” said Fratzel. “Without those increases the working capital is too low.”
“The rates that are approved now are half of what was recommended by last year’s study,” said Jeff Kessler. “They’ve already been held down some.”
Brown has been pushing for money to rebuild the water and sewer infrastructure, in addition to maintaining it. He said, “Sixty-three% of our assets have outlived their useful lives.”
The town’s drinking water travels from Gilman Pond through a pipe that is 124 years old.
“A lot of our isolation valves don’t isolate,” said Kessler. “So if there’s a leak you can’t stop it.”
Town Manager Hunter Rieseberg said the public works department will be developing a list of critical projects so the most critical ones will get done first.
The raise didn’t sit well with some citizens. Dave Kibbey, a Newport taxpayer, asked for a smaller increase.
Bert Spaulding Sr. pointed out that water consumption is down and questioned why water rates would be going up. “What are the driving costs?” He asked.
“Salaries, benefits, supplies, insurance, debt service, capital outlay,” said Brown. “That’s in the rate study, which is available on the town website.”
The water department finances have benefited from the settlement of a lawsuit over a phosphorus filtration system at the plant that didn’t work, so “right now we have adequate working capital,” said Brown.
“We’re starting to make improvements to our system, which is very old,” said Brown.
Water usage overall has been declining, largely because Ruger Manufacturing installed a new system to re-use water coming into its factory; Ruger’s consumption dropped from 60 million to 20 million cubic feet in 2014. Household water users also used less in the drought of 2016.
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