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Water rate costs uniformity questioned

(6/15) While the Mayor and Town Council seem locked step (although not happy about it) with the need to raise water rates to replenish the Town’s Water Fund, the unintended consequences of the decision to set the cost the water rates based upon the size of the connection a property has to the Town’s water system has attracted the attention of some members of the Town Council.

Unlike other comminutes which base quarterly water bills on either a minimum flat fee for a set amount of water (with a surcharge for the any water used above the minimum), or a straight fee for the amount of water used in total. In both cases however, the cost per gallon of water is the same.

In Emmitsburg however, the water rate increase enacted last year resulted in a tiered cost of water based upon the size of the connection to connection to the water systems, not the account of water one actually uses.

For the vast majority of homes connected by a ¾ inch water pipe, the minimum cost of water is now $17.14/month.

But for customers connected by a 1" pipe the same amount of water drawn by homes with a ¾ inch connection costs them $28.57. Property owners with a 1½ inch

Connection pay $57.13. If you unlucky to be connected by a 4 inch pipe, the cost of the same amount of the minimum draw of water cost $285. The price almost doubles to $571 for the same amount of water drawn thought a 6-inch connection.

While the size of the water connection to the water system is normally based upon the nature of the business – for example, restaurants, which utilize a lot of water, have naturally larger connections, increasing, the mandates on fire protection sprinklers, especially in new homes built after 2020, are requiring builders to consider their connection to the Town’s water system with pipes sizes that can support the required flow rate of the sprinkle system. This requirement could result in the future homeowner paying more for the same amount of water as adjacent homes not built with a sprinkle system.

The cost of not factoring in the requirement to install a sprinkle system into water rate cost is best exemplified at the new Seton Center, which is connected to the Town’s water system by a 6-inch pipe – a size driven solely by the facility’s sprinkler system. As a result of last year’s rate increase, the Center saw it quarterly water bill increase by $810, even thought the facility has only water fountains and bathrooms.

The disparity in the cost of the same amount of water based upon the size of the connection to the water system was brought to light by Town Treasurer Valarie Turnquist as part of her on-going due diligence into the Town’s finances and monthly briefing to her fellow commissioners.

The Council agreed that the current water rate structure will be revised at the September meeting after the town has a full year of data to review. Based upon current projections, last years rate increase will see the town Water Fund balance increase by close to $400,000, and increase of $390,000 over last year.

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