(11/28) The future of the Town’s water rates was a priority topic at November’s Town Council meeting. It is well known that the 36% hike in water rates approved last year has been a source of frustration and malcontent with Emmitsburg residents.

The drastic increase in rates was a response to the Town’s water fund’s inability to afford its day-to-day operational costs, carry out necessary improvements or fix failures in treatment and distribution systems. This discrepancy and the lack of any rate increases for 14 years have depleted the cash reserves that allow the Town to apply for grants from the USDA. The Town must show that they have adequate cash to cover operating expenses for 90 days in order to qualify for these grants. The grants designed to help communities fund water system improvements have become increasingly competitive over the past three years.

The original plan called for a 36% increase in rates every year for the next five years and an annual increase of 3% thereafter. Commissioner Jim Hoover explained that before the increase in FY23, $435,000 in water rate fees were collected. After the first increase in FY24, $628,000 was collected. Assuming the Town continues to collect 36% higher rates for the rest of this FY, an estimated $855,000, which is nearly double, can be expected.

The commissioners discussed keeping the current water rate for the rest of this fiscal year (to end in June), then reduce the rate to something more manageable for residents. They would then create a plan that requires the Council to revisit the water rates every year to determine if they should be raised or lowered. Town Manager Cathy Willets said doing so would put the Town in a better position and give the developments time "to get the ball rolling."

Willets also discussed the Town’s future potential development and its impact on the water fund with tap fees, a one-time fee for connecting a property to a water or sewer system. These include, as of now, the Christ Community Church expansion and a whiskey distillery in the Town’s East Industrial Park. Emmit Ridge is another subdivision with the potential to provide the Town with tap fees, however it is early in its development so it could be years before any financial benefit is seen.

With these limited development opportunities currently on the horizon for the Town, staff will need to look for alternative funding to support the several Town projects that are desperately needed. Specifically, funding will need to be sourced for the West Main Street and Waynesboro Pike water main replacements, both of which have been repaired many times.

Willets pointed out to the Council that, "The bottom line is you need growth and tap fees to continue to grow or you can continue wasting money by putting band aids on the issues." She said, "You can’t raise the rates high enough to cover the projects that need done."

Of the many projects, Willets said that some were "wants, not needs." Of these projects is the Water Meter Upgrade Project. "It will help us with water loss and managing leaks and allow people to know when they have high usage, but it’s a want," she said.

She also pointed out that the Federal and State mandated projects (MS4, Lead Line Service Inventory and Dam Inspections) are "killing small towns." These projects are required and come with high, unexpected price tags!

Commissioner Amy Pollitt mentioned that historically the Town has made a lot of concessions for businesses coming into Town, including lower taps fees and not raising impact fees. "I don't think we should be making concessions that hurt our bottom line and put the burden back onto the residents," she stated. Pollitt suggested looking into changing these practices in the future.

With the commissioners all in agreement to make changes to the water rates, a workshop was scheduled for mid-January.