Woodsboro to raise water rates by 25%

(5/27) "It’s the last thing I wanted to do," said a clearly frustrated Burgess Heath Barnes, "but we have no other options. The water and sewer systems aren’t paying for themselves and we’re constantly having to take money out of our general fund to cover the shortfall. We just can’t keep doing it."

In January, the Town’s auditor recommended the Town Council cancel a $400,000+ loan that it had been carrying in its books from its General fund to its Water and Sewer fund. The Town Council voted unanimously in favor of this action at last month’s meeting.

Currently, all expenses associated with running the Town’s water and sewer system, such as electricity, maintenance, equipment replacement costs, chemicals, and waste disposal, are charged directly to the Water and Sewer Fund. While the $75,000/year salary of the support contractor who physically oversees the day-to-day operation of both plants is charged to the Water and Sewer Fund, the salaries of the Town’s two full time employees as well as the Town Manager are charged to the General Fund, regardless of whether or not they are working on items related to the water and sewer system.

The ‘hours’ the Town’s two full-time employees work on Water and Sewer operations is tracked and these incremental charges create the bulk of the $400,000 loan to the Water and Sewer Fund that has accumulated over the last 20+ years.

The Town’s auditor told the Council at its November meeting that while in the "perfect world," the water and sewer systems should pay for itself, there is no requirement to do so, and that many small towns, like Woodsboro, often charge staff and office expenses related to working on water and sewer activities to accounts associated with general town affairs. But she cautioned the town that it would be wise to nail down actual costs, which the town has now done.

"By clearing up the loan on the books of the Water Fund," Barnes said, "it enabled the town to get a better idea what the true financial situation is with the Town’s Water and Sewer Fund, and in doing so, get a better understanding of how much it is costing the town to run the water and sewer plant, and to make sure we are at least close to breaking even on cost. Unfortunately, what the number told us was not good."

Currently, residents pay a flat rate of $17/quarter for a "connection fee", and $4.60 for every 1,000 gallons of water they use. Under the new fee structure, the "connection fee" will increase to $20/quarter and the cost of water will increase to $5.75 for every 1,000 gallons of water used.

Residents currently pay a flat sewer rate of $125/quarter for the first 10,000 gallons they take from the town water system. Under the new rate structure, the flat sewer rate will increase to $140/quarter. For every 1,000 gallons of water/quarter used by a homeowner an extra $14 will be added to the quarterly bill.

"While a 25% rate increase may sound like a lot, for the average homeowner who uses 10,000 gallons of water a quarter, their quarter bill will only go up $34," said Barnes. "Even with the rate increase, we still have the cheapest water and sewer rates in the county."