Water Rates Going Up 5 %

Selectmen have voted to increase Norfolk town water rates by 5 percent effective July 1.

The Board of Selectmen, which is oversees the town’s De­partment of Public Works and acts as the town’s water com­missioners, voted 3-0 for the rate increase this past Monday night.

Even with the increase town officials expect a $63,000 def­icit next fiscal year between expected expenses and expected revenues. An 8 percent increase would have just about wiped out the projected deficit, but selectmen said they want to keep the increase as low as possible in tough times.

The town’s public works director, Remo “Butch” Vito, ini­tially proposed two weeks ago either an 8 percent or 10 per­cent increase, either of which would probably bring in enough money for the town Water Division to run in the black. When selectmen first discussed the issue on Monday, March 8, they seemed to be leaning toward an 8 percent increase.

Selectman Jim Tomaszewski noted that the Water Di­vision’s retained earnings are down to only about $56,000, which initially led him to argue for a higher increase in water rates.

“Ten is high, but I think 8 is the minimum you have to raise it right now,” Tomaszewski said. But the poor economy has selectmen worried about water customers’ ability to pay. “This is not the year to raise it 8 percent, though. It’s not,” Selectman Rob Garrity responded. Selectman Jim Lehan, board chairman, note that the projected revenues for next fiscal year don’t include at least $50,000 in betterment charges that residents are expected to pay because town water has come to their street.

Betterment charges are assessed whether property own­ers actually connect to town water or not. If the town collects the betterment charges as expected, then the money could just about wipe out the expected deficitin the operating budget. (An example: Vito said only three or four homes on Bush Pond Road off Park Street have hooked up to town water dur­ing the past year, but all 20 or so home owners are liable for the betterment charges because town water pipes are avail­able to their homes.) The expected betterment revenues may offer breathing room for the operating budget, even if the cost of running the town water system is expected to be higher than the revenue that comes in from water rates.

“I personally would favor a 5 percent increase, and [if] we have to revisit it in a year, we revisit it in a year,” Lehan said.

On a related matter, selectmen appear to be persuaded

that a new water superintendent position is warrant­ed, but they want to make sure that the public works department makes allowances in writing for cost sav­ings from relying less on Whitewater, the town’s wa­ter consultant. Selectmen balked two weeks ago when Vito initially presented his recommended town water budget including a new water superintendent, saying they wanted to see related cost savings in next fiscal year’s budget. Selectmen were worried that the town would hire the water superintendent and continue to pay the consultant the same amount of money indefi­nitely. But Vito and Town Administrator Jack Hathaway But Vito and Town Administrator Jack Hathaway have said the town needs a seasoned professional to improve the Water Division and address problems with town water, including continuing pinhole leaks in underground water pipes.

Selectmen and Vito discussed the water super­intendent at length during a selectmen’s meeting Thursday, March 18, and they plan to reevaluate the water operating budget in about six months, after a new water superintendent is hired. The current rates for Norfolk town water are:

$4.75 per 1,000 gallons for 0 to 15,000 gallons $5.70 per 1,000 gallons for 15,001 to 35,000 gallons $7.41 per 1,000 gallons for 35,001 to 50,000 gallons $10.37 per 1,000 gallons for 50,001 gallons and more

The new rates with the 5 percent increase cover fiscal year 2011, which runs from July 1, 2010 through June 30, 2011.

Vito said Norfolk’s Water Division, which is a part of the town’s Department of Public Works, has in re­cent years seen a decline in revenue. Part of the decrease may stem from more accurate readings from new water meters. “We actually had a drop in revenue when we went to the meters,” Vito told selectmen.

In addition, he said, Norfolk town water custom­ers also appear to be conserving water. Town Administrator Jack Hathaway said a recent meeting of area town officials led to an interesting discussion about municipal water revenues along the same lines. “Every town’s revenues have been dropping the last three years, and probably because of the econo­my. People are using less and less water,” Hathaway said.