Red Hook board approves modest water-rate increase; warns of larger cost for tank rehab next year

The Town Board of Red Hook on Sept. 24 approved a proposal to raise water rates for Water District No. 1 and heard detailed briefings about a needed storage-tank rehabilitation that could drive substantially higher costs next year.

Hank Van Parris, chair of the Red Hook Water Board, told the board and residents that the district has used a steady 5% annual rate increase for several years but will likely need a larger increase or borrowing when the district undertakes a next-year rehabilitation of its storage tank. Van Parris said the board’s current estimate for a full replacement was roughly $4 million and that a less-expensive rehabilitation would be about $1.7 million; he noted those are estimates and that bids have not yet been received. "We're gonna see a bigger increase next year," he said.

The public hearing opened with the town clerk reading a formal notice that listed the proposed changes: increasing the district minimum charge from $40.54 to $57.33 for up to 9,000 gallons and raising the per-1,000-gallon rate over 9,000 gallons from $6.62 to $6.95 (figures as published in the notice on file with the clerk). The board then voted to approve the water rates and charges for Water District No. 1.

Why it matters: The water board said the district has historically had comparatively low rates but that aging infrastructure — including transite and ductile-iron mains and the near-40-year-old storage tank — will require major capital work. Van Parris said the district currently holds roughly $800,000 in reserves but that the tank work will likely require borrowing and possibly a mix of rate increases and ad valorem tax support to service the debt. "Water is not free," Van Parris said, adding that some mains are already 60–70 years old and replacement costs can be substantial.

Details of the hearing and district history: Van Parris, who said he has managed the district for 25 years, reviewed the system’s development going back to mid-20th century tie-ins, well drilling, and the construction of the storage tank in 1989 (Bard College paid half of the original tank cost). He described prior bond-anticipant-note payoffs, current reserve categories (reconstruction and transmission), and recurring maintenance items such as well rehabilitation and pump replacement. He said the tank could be rehabilitated several times but ultimately will require either replacement or repeated rehabs.

Board and staff remarks: Board members present signaled support for the rate increase and acknowledged the water board’s recommendations. A board liaison who attends water-board meetings said the district’s experts expect modern coatings to extend the interior life of a rehabilitated tank to perhaps 15–20 years and that the borrowing term under consideration is likely to be about 15 years.

Public comments and next steps: No substantive public opposition to the 5% increase was recorded during the hearing, and Hank Van Parris said he and the water board will return in the spring with more precise cost and financing figures once the district has collected bids or proposals. The board approved the rate resolution and closed the public hearing.

Votes and next steps: The board approved the rate change (resolution recorded as to water rates and charges for Water District No. 1). Van Parris and water-board members said they will refine project estimates, solicit proposals, and return to the town board for decisions about borrowing, reserves, and possible tax support.

Ending note: The water-board chair framed the decision as a transition from years of "coasting" to a period of necessary capital investment, emphasizing the district’s comparatively low rates today but warning of higher bills ahead as infrastructure work proceeds.