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Village water rates may increase in Massena; water expenses exceeding revenue by nearly $400,000

Posted 10/7/15

By ANDY GARDNER MASSENA -- Village water rates may soon go up. Trustee Timothy Ahlfeld told the Board of Trustees on Tuesday that the water expenses are now exceeding revenue by nearly $400,000. …

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Village water rates may increase in Massena; water expenses exceeding revenue by nearly $400,000

Posted

By ANDY GARDNER

MASSENA -- Village water rates may soon go up. Trustee Timothy Ahlfeld told the Board of Trustees on Tuesday that the water expenses are now exceeding revenue by nearly $400,000.

“We’re potentially two years from going in the red,” Ahlfeld said.

He proposed an increase of 60 cents for every 1,000 gallons for everyone, residential, commercial, industrial and institutional.

The village charges a flat rate for the first 3,000 gallons, normally $10.05 cents per month, which would be hiked to $11.85.

For every 1,000 gallons over that, residents inside the village would be charged $3.95. Outside the village would be charged $4.15.

Alcoa, the only industrial customer, would be charged $6.95 per 1,000 gallons after their flat rate, which is more gallons than the residential.

The new institutional rate will go up to $82 per month, Ahlfeld said.

He said the rate hike will procure about $309,000 more annually, with fund balance offsetting the remainder of the approximate $400,000 gap.

If it passes, this is the first time since 2010 that water rates will have gone up.

“We’ve looked at rates outside the village of Massena … outside of St. Lawrence County. We’re very competitive, it’s not that we should raise it to keep up with someone else,” Ahlfeld said. “This is not a knee-jerk reaction.”

“A lot of data was looked at in looking at these rates. It’s never easy, with tax going up and rates going up, it hits pockets,” Trustee Matt Lebire said.

In response to question from an audience member asking why the board had hired two new water workers earlier in the year and is now raising rates, Lebire said the hires were necessary to keep up with maintenance, preventing bigger costs down the road.

“Not filling positions is not a savings … it can mean maintenance not being done, having to contract out,” Lebire said. “It’s not just that cut-and-dry.

“It made sense long-term economically.”

The board is planning a future public hearing on adopting the rate increases.