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North East Mayor and Commissioners review proposed water rate increases and plan follow-up
Summary
At a March 8 workshop the Town of North East reviewed two multi-year water rate scenarios proposed by consultant Robert Ryall to fund capital work; the board agreed to meet March 15 to pick a scenario for a later public hearing. No rate change was adopted at the workshop.
The Town of North East Mayor and Commissioners met March 8, 2017, to review a water rate study presented by Robert Ryall of Wilden Financial Services. Ryall outlined two multi-year rate scenarios designed to raise revenue for capital improvements and debt service but asked the board to authorize staff to move forward and to schedule a public hearing for April 26, 2017; the board instead agreed to meet March 15 to review the scenarios before authorizing any hearing or rate adoption.
Ryall said the first scenario would raise rates 14 percent in fiscal 2018 and then 6 percent annually in fiscal 2019–2022. The second would raise rates 16 percent in fiscal 2018, 5 percent in fiscal 2019 and 3.5 percent in fiscal 2020–2022. He told the board both in-town and out-of-town customers would see increases, and that bills in the model assume a 5,000-gallon minimum with an additional charge for each extra 1,000 gallons.
The consultant presented the increases as necessary to fund capital projects over approximately six years. Project needs cited in the presentation included tank repainting, water main work, installation of tank mixers and a possible system acquisition. Ryall also included two fixed fees in the analysis: a Major Facility fee of $3,500 and a Connection Fee of $2,500, which he said would help pay associated debt service.
Board members did not adopt any rates at the workshop. After discussion, the board scheduled a follow-up meeting for Wednesday, March 15, 2017, so members could review the proposals and instruct Ryall which scenario to prepare for the planned public hearing. Commissioner Michael Kline moved to close the workshop; Commissioner Hilary A. Crothers-Moore seconded and the meeting adjourned at 6:28 p.m.
Next steps: the board will review detailed proposals at the March 15 meeting; the public hearing Ryall proposed in late April will proceed only if the board formally schedules it during that review.
