By Rob Sample
The Town of Southeast is eyeing across-the-board rate increases for water and sewer district residents, which were discussed at the Dec. 5 town board meeting.
“These rate increases are part of our operational cost for the nine water districts and three sewer districts here in the Town of Southeast,” said Town Supervisor Nick Durante. “Each district is considered a separate entity. This structure is a state mandate, which requires water and sewer districts to operate independently and be financed by the residents they serve.”
Under this arrangement, when any water plant equipment fails and must be repaired or replaced, the funds to do that have to come from that particular district. While the proposed rate increases are not final, Durante noted, they need to rise to meet water service demands as well as the district’s own need to remain fiscally solvent.
Percentage-wise, most of the proposed increases would be in the single digits, but Special Districts Administrator Bruce Bridges noted several double-digit increases. The largest increase by far would be in the Fox Hill Water District, which services just 33 residents.
“It is going from $290 to $440 (quarterly),” said Bridges.
That rate increase is in part due to the replacement of two pumps, at a cost of $16,500, as well as a $7,851 increase in plant operation costs. Fox Hill is not the smallest water district in town, but it’s the only one that’s currently in the red. The district’s current deficit is $45,000.
“They’ve been running a deficit for probably the last three or four years,” said Ron Hund, the town’s accountant. “Each year we try to raise the rates a little bit, hoping that at the end of the year they wouldn’t have a deficit. But for the last three-four years straight they’ve been having one.”
Hund noted that when a district such as Fox Hill can’t meet its expenditures, the town makes a temporary loan to the district. “They’re at the point where the rates have to be raised, unfortunately… to try to wipe out the deficit,” he said.
For comparison, the Blackberry Hill Water District would see a 2.73 percent increase. For Springhouse Water District residents, the proposed increase would be 2.99 percent.
Durante noted that the age of water infrastructure has been a key factor in rate increases. “The quick history is that a lot of these plants weren’t maintained properly,” he said. “And now it’s kind of coming back at us. Some of these pumps are pretty old that are breaking, and there’s not much we can do… We have to replace these pumps.
“Each district has at least two wells,” he continued. “There has to be a backup for the district if one well goes down. We have to be able to provide water.”
The only way for the district to spread the cost out over months or even years would be to pass a bond measure. This would add costs for legal services and printing – making such a project even more expensive, according to town officials.
“Is it a fair statement to say that we don’t know what the result of this rate change will be in terms of revenue on a full year, and when would we know that?” asked Councilman Eric Larca.
Hund responded that once the fourth-quarter usage readings come in from all districts, the actual results will become more apparent because they will be based on annual usage totals.
Larca also noted that the Brewster Heights Water District will ultimately need to replace three sand filters at its treatment plant, to the tune of approximately $1 million. “Is that something we should start to seek grants and funding for?” he asked.
Hund noted that the 10.64 percent rate increase would provide some preliminary funding for those filters, and that he and Durante have continued to press state elected officials and the Department of Environmental Protection for funding assistance.
Brewster Heights resident Jim Gaynor asked why the cost of one water pump replacement – at the Drewville Road station – was estimated to cost $150,000 but actually cost $240,000.
“The remainder is (from) engineering and other costs,” answered Durante. “I have to tell you, we were very lucky – the next bid was substantially higher.”
Durante said many of the housing developments in Southeast date to the 1950s and 60s, at which time the developers set up water districts to meet the needs of those homeowners. In addition to the aging infrastructure, costs for materials and equipment needed to fix or replace things have gone up dramatically in recent years.
“We always work diligently to get funding for these water infrastructure projects, which has an impact on everyone in the town,” he said.
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