The Alberton Papers # 9
By Dick Darne 3-26-06
In this paper we will return to #3 and discuss water/ sewer rates. As I said before, state law requires that "enterprise funds" must stand alone, and in the case of the sewer, revenues must exceed expenditures by 10% as conditions of the grants and loans. This is not a bad thing, back in 1968, we installed a nice new sewer treatment plant and the town fathers calculated that a total monthly charge of six dollars would cover the loan and costs (no reserve fund).they then said "well we wont have to worry about this in our lifetime". This proved to be true. When the system needed replacing, there was no money set aside, and they were all gone to the great town meeting in the sky. Unfortunately when there is no money, then it is necessary to beg and borrow, stealing being impractical and illegal, placing the town at the mercy of the grantors, lenders, and bureaucratic regulators. When the smoke clears, you not only have debt, but you are now subject to lots of "shalls" which are distinct from optional "should’s and ought-to’s . Extrapolating from the auditor’s report, the deficiency in the sewer revenues is $8996, = about $750 per month= (lets use 150 customers) =$5 increase per household (approx.) Looming on the horizon is a water system upgrade (rough est $2 million). Superior is looking at about $1.2 million and a rate increase of about $4.50. Assuming the same degree of granting for us as Superior, we would be looking at about $7.50 increase. Not even allowing for inflation, we could be looking at $12 more in rates in a couple years. This paper is not to pass judgement on whether we should raise rates, that decision ,in a great part, is not even ours to make. What to do?
As stated in the audit,"the town needs to increase sewer rates or reduce operating costs". Reducing costs is a good start. Maybe reducing other expenses with an offsetting tax reduction. Reexamine the maximum water rate currently capped at $80. Any consumption beyond what is needed for household use is more luxury than necessity. On the other hand, during the times (9 months or more) that there is excess water running from the storage overflow, why should we pay a premium? Most of us have wasted water at some time or another. How do our rates compare to other towns? Exactly how much would we save on insurance with upgraded water mains and fire hydrants? Maybe we could build a "doggie park for tourists", tourism would increase and sales of dog food would soar, increasing profits for the store, which would expand, causing a greater taxable value, increasing revenue with accompanying rise in employment, causing ever spiraling prosperity and forever solving our economic woes ad nauseam. Or we can halt the "march of folly", reduce spending and realize that this is where we live, not a tourist mecca. This is a time for good ideas, and don’t forget to ask questions. The best is yet to come.
Dick Darne. #1- #8 reprints available. 722-4575
aldermandarne@hotmail.com
box 246 alberton
criticism or literary contributions welcome
differing viewpoints also welcome
By Dick Darne 3-26-06
In this paper we will return to #3 and discuss water/ sewer rates. As I said before, state law requires that "enterprise funds" must stand alone, and in the case of the sewer, revenues must exceed expenditures by 10% as conditions of the grants and loans. This is not a bad thing, back in 1968, we installed a nice new sewer treatment plant and the town fathers calculated that a total monthly charge of six dollars would cover the loan and costs (no reserve fund).they then said "well we wont have to worry about this in our lifetime". This proved to be true. When the system needed replacing, there was no money set aside, and they were all gone to the great town meeting in the sky. Unfortunately when there is no money, then it is necessary to beg and borrow, stealing being impractical and illegal, placing the town at the mercy of the grantors, lenders, and bureaucratic regulators. When the smoke clears, you not only have debt, but you are now subject to lots of "shalls" which are distinct from optional "should’s and ought-to’s . Extrapolating from the auditor’s report, the deficiency in the sewer revenues is $8996, = about $750 per month= (lets use 150 customers) =$5 increase per household (approx.) Looming on the horizon is a water system upgrade (rough est $2 million). Superior is looking at about $1.2 million and a rate increase of about $4.50. Assuming the same degree of granting for us as Superior, we would be looking at about $7.50 increase. Not even allowing for inflation, we could be looking at $12 more in rates in a couple years. This paper is not to pass judgement on whether we should raise rates, that decision ,in a great part, is not even ours to make. What to do?
As stated in the audit,"the town needs to increase sewer rates or reduce operating costs". Reducing costs is a good start. Maybe reducing other expenses with an offsetting tax reduction. Reexamine the maximum water rate currently capped at $80. Any consumption beyond what is needed for household use is more luxury than necessity. On the other hand, during the times (9 months or more) that there is excess water running from the storage overflow, why should we pay a premium? Most of us have wasted water at some time or another. How do our rates compare to other towns? Exactly how much would we save on insurance with upgraded water mains and fire hydrants? Maybe we could build a "doggie park for tourists", tourism would increase and sales of dog food would soar, increasing profits for the store, which would expand, causing a greater taxable value, increasing revenue with accompanying rise in employment, causing ever spiraling prosperity and forever solving our economic woes ad nauseam. Or we can halt the "march of folly", reduce spending and realize that this is where we live, not a tourist mecca. This is a time for good ideas, and don’t forget to ask questions. The best is yet to come.
Dick Darne. #1- #8 reprints available. 722-4575
aldermandarne@hotmail.com
box 246 alberton
criticism or literary contributions welcome
differing viewpoints also welcome
posted by aldermandarne | 1:07 PM
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