Powdersville Water District rates going up 3%

Staff Report

POWDERSVILLE — The Powdersville Water District board of directors approved the district’s budget for 2016 at a recent meeting. The new budget includes a 3.0 percent rate increase for retail customers that will become effective with the January 2016 billing

“We are very pleased that, even with the dramatic increase in growth and our continuous commitment to excellence, we have been able to keep the rate increase to 3 percent,” said Dyke Spencer, executive director. “This is a testament to the hard work and efficiency of a great staff of water professionals I have the privilege to work with.”

The recommendation for the increase was the result of PWD’s annual financial plan and rate modeling update. Each year PWD completes an annual update of its comprehensive Financial Plan and rate model to ensure that rates are adequate to cover projected expenditures for the coming year.

This process takes into account not only the ongoing expenses of operating the system on a day-to-day basis but also debt service costs and any planned capital improvements.

Officials said the rate increase for 2016 was driven by four key factors:

• PWD purchases all of its water and the rates from two out of the three PWD suppliers are scheduled to go up in 2016.

• Increased growth in the PWD service area has increased PWD staff activities such as tap installations, infrastructure upgrades, and repairs to existing mains and service lines.

• Continuing the multi-year plan to upgrade and/or replace aging water mains.

• Normal operating expense categories, such as materials costs, have increased slightly.

With the increase, PWD water rates remain comparable to other similar sized utilities across the state. A typical PWD residential customer who uses 6,000 gallons per month can expect to pay $39.94 per month with the new rate in place, an increase of $1.16 per month.

Staff Report

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