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Select Board to consider new water and sewer rates

Date: 2/16/2009

By Courtney Llewellyn

Reminder Assistant Editor



LONGMEADOW -- Should debt for capital improvements to the water and sewer systems be included in the fixed rate for these services, or should it be included as a variable cost?

That's the question the Longmeadow Select Board, serving as Water Commissioners, have to decide.

Last Wednesday, Town Manager Robin Crosbie, Finance Director Paul Pasterczyk, Department of Public Works (DPW) Director Mike Wrabel, Town Engineer Thom Martens and Assistant DPW Director, Water and Sewer Pete Thurber -- the water and sewer rate team -- presented the two options during a public hearing at Glenbrook Middle School.

While the current debt service for water is expected to decrease in fiscal year 2010 (FY10), the current debt service for sewer is expected to rise. Proposed debt service would total $500,550 in FY10. All capital projects more than $100,000 would be bonded, while those less than that amount would be paid for out of reserves.

"We're trying to get things in place for long term system maintenance," Pasterczyk said.

With debt as a fixed cost, the system charge what it costs to be hooked up to the town's water system would be an annual fee of $183.96; with debt as a variable cost, it would be $94.98. For sewer, the system charge with debt as a fixed cost would be $172.87 a year; with debt as a variable, it would be $90.70.

As for the water rate, including debt as a fixed cost would mean a rate of $1.51 per unit; including it as a variable would mean a rate of $2.09 per unit.

However, a proposed conservation rate for those households that use less than 225 units a year would see a fixed rate of $1.43 per unit and a variable rate of $1.98 per unit.

With sewer, the rate with debt as a fixed cost would be $1.60 per unit; with debt as a variable, $2.23 per unit.

"We are not recommending putting the debt service in the fixed cost," Pasterczyk stated, "but as a variable cost to aid low-use users."

Those who used less units of water could conceivably save money, according to Pasterczyk.

The water and sewer team recommended the adoption of the conservation rate for water, with the debt service included as a variable cost. They also recommended the proposed sewer rates with debt service as a variable cost.

"We have a lot of things to look at," Select Board member Kathleen Grady said. "We're looking at the people who have to write the checks and some very large numbers. There are almost $5 million in capital expenses in the first year...the question is how rapidly we need to reach these goals."

Select Board Chair Paul Santaniello said that the board would have two or three meetings as the Water Commission exclusively to debate the rates and the recommendations.

To see the full version of the presentation made at the hearing, visit www.longmeadow.org.