The Water Department and Water Commissioners will hold the second of two public hearings on proposed water rate increases on Tuesday, Sept. 3 at 7 p.m. on Zoom.
The department needs to raise rates for two reasons, Water Department Superintendent Darin LaFalam said. The last fiscal year saw greater than average rainfall, resulting in less demand for water (especially water used for irrigation) and therefore revenue that was about $200,000 less than expected.
In addition, the Department of Revenue requires that the town’s real estate tax bills cannot be processed until the Water Department budget is balanced and shows no possibility of a deficit. This directive has been in place for decades, but in prior years, the town was able to submit an analysis comparing several fiscal years showing water consumption and revenue collected to support the fact that varying weather patterns affect water consumption in any given year, and that on average, most fiscal year revenue remains somewhat consistent.
“This year, they are not accepting that analysis. We must prove where the additional revenue will come from, and the only way to do that is through a rate increase,” said Finance Director and Town Accountant Colleen Wilkins. “Since projected revenues for the FY2025 budget are based on prior year amounts, and those revenue amounts came in lower than anticipated, the FY2025 budget is now out of balance.” She added that this issue affects only the FY2025 budget, and that FY2024 results (revenues compared to expenditures) from water operations were positive.
Details of the budget shortfall and proposed rate increases will be revealed at the hearings (the first was on August 27). Click here for the Zoom link for the September 3 hearing.
The irony is that a reduction in water consumption is a good thing- something we have been striving for.
But that reduction has triggered another problem.
Is this why we do not ban non- ag. irrigation?