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WaterWorth presents multi‑year rate scenarios; wastewater model shows large near‑term hikes unless reserves or revenue change
Summary
A WaterWorth presentation to the assembly outlined wastewater and electric financial forecasts that showed cash shortfalls tied to major capital projects (pump stations, effluent disinfection). The wastewater model projects a large multi‑year rise (combined ~53.5% over 2027–2031 in one scenario); WaterWorth showed an average 4,000‑gallon wastewater bill rising roughly $12.51 under the proposed scenario. The assembly asked staff for alternative spread‑out scenarios and effects of a new 1–2 MW customer on rates.
WaterWorth presenters walked the Petersburg Borough Assembly through baseline and alternative models for the borough’s wastewater and electric funds and recommended rate scenarios to protect cash reserves and meet upcoming debt service.
On the wastewater side, presenters highlighted three large near‑term capital peaks: a pump station project (about $3.4 million), the Skow Bay work (approximately $5.1 million) and an effluent disinfection project in the 2030 window. The model combines operating expenses, existing debt service and proposed new debt and shows cash deficits in 2028–2029 if rates remain at status quo. WaterWorth noted a $10 million grant for effluent disinfection that reduces some need but does not eliminate projected gaps.
Key numbers presented and discussed in the meeting (all from the WaterWorth slides/discussion): - For an average wastewater user (4,000 gallons), the current bill cited was $62.54; under a proposed wastewater rate change the example bill rose to approximately $75.02 (about a $12.51 increase). WaterWorth emphasized that the exact impact depends on the chosen scenario. - An assembly member summarized one summary scenario as a combined ~53.5% increase across 2027–2031 if certain capital costs are backed into rates; WaterWorth agreed that staging or spreading increases (for example, a smaller but sustained 10% over multiple years) is a modeling choice that changes how quickly reserves are used.
On the electric side, presenters recommended smaller incremental increases (on the order of ~4%) to sustain cash position under the current capital plan; WaterWorth said adding a large commercial customer (for example, a 1–2 MW data center) materially increases sales volume and could reduce the need for future rate hikes. The electric presentation included a demonstration that an extra $1–2 million in annual sales revenue could lower forecasted rate pressure.
Assembly response and next steps: members expressed concern about the magnitude of wastewater increases and asked staff to produce alternative scenarios that spread the impact over more years, and to show how adding a 1–2 MW commercial customer would change required rate increases. Staff and WaterWorth agreed to return with those scenarios prior to any ordinance or formal rate adoption; the assembly noted they would see draft ordinances at a later meeting before votes.
Quotes from the transcript: “For an average user… the current bill stands at $62.54, and it’ll be going up… to $75.02, which will be $12.51,” WaterWorth said during the presentation. An assembly member summarized the multi‑year projection: “between 2027 and 2031, we’re gonna be looking at a combined rate increases of 53.5%,” and WaterWorth confirmed that combination scenario when presented.
