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Council to consider eliminating discounted sewer allocation for public projects; hearing to be scheduled

New Shoreham Town Council and New Shoreham Sewer and Water Districts · October 21, 2024
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Summary

Council members discussed a proposed ordinance change to remove a 75% discounted allocation rate for public projects so public and private allocation purchases would pay the same cost; staff will circulate a revised draft and a public hearing was proposed for early November.

Council and district staff on Oct. 21 introduced a proposed amendment to the sewer-allocation cost ordinance that would remove the current discounted allocation rate applied to public projects, aligning public-project allocation costs with private purchases.

Dylan (district staff) told the council the draft would eliminate a 75% discounted rate for allocation purchases tied to public projects, arguing the discount effectively subsidized public sewer projects with private ratepayer revenue. "The current consensus is that the public sewer projects should not be subsidized by private rate payers and that the discounted rate for allocation should be eliminated," Dylan said.

Council members asked about practical implications, noting that when pursuing grant funding the allocation cost is often a pass-through item. One council member said the town had benefited from the discount historically and that the change would increase the allocation costs the town pays for public projects.

Staff and council agreed to circulate a revised draft and set a public hearing; staff asked for the document at least a week before the scheduled hearing so the council has time to review. A staff member volunteered to place the public hearing on the Nov. 4 agenda if the draft is ready in time.

The council did not take a final vote on the ordinance at the Oct. 21 meeting; next steps are review of the revised draft and a public hearing.