|
|
The Jay Township Water Authority unanimously approved the increase Tuesday after providing an explanation of why such a large increase is needed.
Chairman Richard Liptak said it cost $210,483.03 to supply water to the users on the system. That includes electricity, gas, billing, the contractor, lighting, telephone, etc. It does not include the cost of loans and capital improvements.
Prior to the increase, which will be effective this quarter, $87,951.48 of the cost of running the plant and providing water came from Ready to Supply money. That is the money paid by anyone connected to the water system.
The state Department of Environmental Protection told the authority that the money from that fee should be used for loans and capital projects. The authority has had a problem getting loans because it doesn't have enough matching money for grants. Other projects require that the authority pay the cost as it goes and be reimbursed later.
If the authority raised the cost to $2.20 per 1,000 gallons, it would just be able to cover costs.
Raising it to $3.30 will mean the board won't be forced to raise rates again next year. It will allow the authority to raise $264,990 in revenue, $50,000 more than it needs. The increase in inflation would mean the authority would have to charge $3.30 per 1,000 gallons by 2018 to cover costs. By raising it to that level now, the authority cannot only pay its costs, but also do necessary work on the system such as updating the plant and replacing lines.
It also needs money to comply with more stringent DEP regulations.
"It sounds like a lot; we're tripling it," Liptak said, "but the actual cost is about 18 cents more a day, about $16 a quarter, which is less than most residents pay for things such as television and gas.
Other changes to be made include non-profits and religious institutions, which will no longer be exempt from water fees. The fire department will be exempt when it comes to water used for battling fires, but the social hall will not be.
Camps will also be charged the same as permanent users, except for grandfathered camps.
A letter explaining the changes and the need for them will be sent to everyone on the water system.
A $5 processing fee has been added to all late payments and reconnect fees will increase from $50 to $100 if the shutoff is due to lack of payment.
This is the first time rates have been increased in 14 years.
---
Reported by JoAnn Seltzer, staff writer. E-mail:jseltzer@thecourierexpress.com.
