The cost of water will be on the rise for Riverhead Water District customers if the Town Board adopts a plan proposed by Water District Superintendent Mark Conklin and consulting engineers H2M.
The water district is looking to plug a $300,000 annual operating deficit and move away from relying on rent payments from wireless companies — which use the district’s tall water towers to mount cell antennas — to help fund the cost of operations.
“Carrier money shouldn’t be part of the operating budget,” Conklin said. The district has had average annual rental income of more than $650,000 from those rentals during the past five years, according to data the superintendent presented at the meeting.
Conklin and engineer John Collins presented several alternative rate schedule changes to Town Board members at their weekly work session yesterday morning.
They recommended decreasing the gallonage included in the quarterly minimum charge, raising the quarterly minimum charge and raising the price per 1,000 gallons for usage over the quarterly allotment included in the minimum.
They also recommended increasing the fee schedule for various services, such as turning water service on or off, reconnecting water service after a disconnect, meter repairs and such.
Residential customers have 3/4-, 5/8 or 1-inch meters, Conklin said in an interview after the work session. The 1-inch meters are generally in newer, larger homes, he said.
There are 6,340 residential customers with 3/4-inch and 5/8-inch meters; they currently pay a quarterly minimum service charge of $10.90, which is good for up to 5,000 gallons.
The district’s 5,233 residential customers who have 1-inch meters pay a quarterly minimum service charge of $19.90, which covers them for up to 12,000 gallons of usage.
Customers who exceed the quarterly usage included in the minimum service charge pay $1.50 per thousand gallons over the quarterly allotment covered by the minimum charge.
Customers with 3/4-inch and 5/8-inch meters would see the quarterly allotment covered by the minimum service charge decreased from 5,000 to 4,000 gallons. Those with 1-inch meters would have their quarter consumption covered by the minimum reduced from 12,000 to 9,000 gallons.
The quarterly minimum service charge would be unchanged for customers with 3/4-, 5/8- and 1-inch meters.
The cost per thousand gallons would be raised 15 percent, from $1.50 to 1.73 for all customers — residential and commercial — regardless of meter size.
Commercial customers, whose meters range in size from 2 inches to 10 inches, pay a monthly — not quarterly — minimum service charge, which would increase along with a reduction in the monthly consumption covered by that service charge.
For example, the 375 customers with 2-inch meters would have their monthly service charge increased from $12.97 to $15.42 (18.9 percent) while the volume of water that fee buys them would be reduced from 10,000 to 8,000 gallons.
Among the district’s largest customers, those with 8-inch meters would see their monthly minimum service charge rise 20.8 percent from $86.63 to $104.67 while the gallonage covered by the fee would fall from 80,000 to 64,000.
If the recommended changes are approved by the town board, the district will see estimated increased annual revenues of $583,000, Conklin told the board. The superintendent said he’d like to see water district operating revenue meet its operating expenses, so it could put rental income into a capital reserve fund set aside for capital projects, such as water tower maintenance and repairs.
Riverhead’s rate schedule, even after the recommended rate increases are put in place, would still be significantly lower than the Suffolk County Water , Collins said.
For example, SCWA currently allows customers with 3/4-inch meters 2,244 gallons per quarter for a quarterly minimum service charge of $26.56, according to the water authority’s website. SCWA customers currently pay $1.81 per thousand gallons for amounts over the gallonage covered by the service charge.
Supervisor Sean Walter told the board the State Department of Environmental Conservation has advocated for Riverhead to raise its water rates to encourage conservation by customers.
Walter said he believes the board should hold a public hearing on any proposed increases, though he said the board could implement the changes without a public hearing.
“I think we should allow the public to weigh in,” the supervisor said.
“I don’t think any of the public will want a rate increase,” Councilman John Dunleavy observed.
Water provider comparisons
Quarterly minimum service charge (3/4-inch meter):
Riverhead – $10.90
SCWA – $26.56
Quarterly consumption allotment included in service charge:
Riverhead – 4,000 gallonss
SCWA – 2,244 gallons
Price per thousand gallons in excess of quarterly allotment:
Riverhead– $1.73 per thousand
SCWA – $1.81 per thousand
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